Apple lays off 100 staff as iPhone 16 launch approaches

Apple has reportedly laid off 100 employees as the iPhone 16 launch approaches. Learn more about the reasons behind these job cuts.

As the tech giant Apple gears up for the much-awaited release of iPhone 16 on September 9, news has surfaced about its Services division laying off approximately one hundred employees.

Bloomberg reports that the company’s restructuring will have a significant impact on several teams, including those responsible for Apple Books app and Apple Bookstore.

According to reports, the workers who were impacted are part of Senior Vice President Eddy Cue’s services group and received notice of their layoffs on Tuesday. The news has not yet been confirmed by Apple, and for this reason, the employees have chosen to remain anonymous.

As reported by Reuters, the precise headcount of Apple’s Services division is unknown; however, the company had an estimated 161,000 permanent employees as of September 2023.

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Apple’s restructuring of its teams to align with new corporate priorities, specifically in artificial intelligence (AI), has resulted in these layoffs.

Although there are plans for future updates, Apple Books has been given lower priority within the company’s range of services. This recent wave of job cuts comes after previous layoffs in April that affected more than 600 workers in California – a significant decrease to their workforce amid the pandemic.

Apart from the layoffs, Apple has also halted progress on certain ambitious undertakings. The tech giant suspended work on its top-tier Vision headset earlier this year and scrapped ideas to devise displays for its smartwatch.

Apple shifted its focus from a multibillion-dollar initiative to develop an electric car in February and turned towards AI-driven programs. The original goal of producing a fully self-driving vehicle was thwarted by various obstacles, including changes in objectives, high employee turnover rates, missed deadlines which ultimately resulted in the cancelation of the project.

In navigating the rapidly changing tech landscape, Apple’s evolving focus is highlighted by these developments. The strategic shift towards AI and other emerging technologies, which are becoming increasingly central to its future growth, is emphasized through the layoffs and project cancellations.

In preparation for the release of iPhone 16, Apple is undergoing internal restructuring to uphold its dedication towards maintaining a lead in an industry filled with competition. These efforts involve difficult choices regarding workforce and future endeavors.