Apple has announced layoffs affecting around 100 employees in its digital services group, primarily impacting the team behind the Apple Books app.

The layoffs were first reported by Bloomberg, with affected employees notified on August 28, 2024.

CEO Tim Cook has emphasized that job cuts are a last resort for the company, which has seen layoffs infrequently compared to other tech firms.

Apple's approach to layoffs has been more measured than other tech companies, which have implemented larger cuts due to slowing growth and a focus on artificial intelligence.

The Services division has become a crucial revenue source for Apple, accounting for over 22% of total sales, a significant increase from less than 10% a decade ago.

The importance of the Services segment has been particularly notable during periods of slower device sales, highlighting its role in Apple's overall strategy.

The company is undergoing a reorganization to align with shifting priorities, particularly towards artificial intelligence, which has led to these layoffs.

The layoffs affected various teams within Senior Vice President Eddy Cue's services division, including significant cuts among Apple Books workers.

Affected employees have been given 60 days to find alternative positions within Apple before their termination becomes effective.

Despite the layoffs, Apple intends to introduce new features for the Apple Books app in the future, although its priority has diminished.

Apple has faced challenges in China, its third-largest market, where sales dropped by 6.5% in the last quarter, adding pressure on its business.

Both Apple Books and Apple News are part of Apple's growing services sector, overseen by Eddy Cue, but the focus is shifting away from less profitable areas.