Apple Inc, the company that offers the latest technology gadgets that we consider fashionable to own currently stands accused of something very astonishing as the world waits for the release of its iPhone 16. Bloomberg News reported earlier this week that Apple has slashed some 100 positions within its digital services division. But in good news, Siri is still around and not going anywhere any time soon! The main consequence is observed in the team that works on the Apple Books app and the Apple Bookstore. Not even professionals such as engineers and their teams such as those managing Apple News were exempted from this frenzy. Here is why it is occurring and what it may portend for Apple:
Why the Layoffs?
However, you may still say, “Apple? Cutting jobs?” Not really. Apple remains the technology giant it has been for years, and the company has around 161000 full-time employees based on the data presented in the September 2023 annual report.
It looks like the management just wanted to get rid of certain employees, as if it had decided to clean out the closet, but more on the corporate level. Apple has been restructuring its teams in the recent past especially to accommodate its new areas of interest such as artificial intelligence. It is in this best that AI is already slowly seeping into our lives, like in our favorite sci-fi flicks, and Apple wants to make sure they are a part of this revolution.
Earlier this year, Apple even stopped some other high-profile projects, such as creating displays for its own smartwatches and a premium Vision headset. Perhaps they want to contemplate and regroup so that they start off on the right foot in terms of competition in the tech industry.
The China Market Blues
But it’s not simply a story of cleaning out the clutter and getting ready for a new season. Apple has also been experiencing some heat in the Chinese market which is its third largest market. Last quarter, the company faced a slight decrease in sales in China as they recorded a decline of about 6.5%.
China, for instance, is home to a large number of Apple fans and consequently, a problem in the country can spread to other areas. Add that with global economic instability and shifting customer trends, it only becomes logical that Apple is currently looking to cut down some slack and ensure forward progress.
What’s Next for Apple?
Now, what does all of this mean for Apple in the future? Well, it seems that the company is preparing for a new phase and shift towards new themes more related to emerging technologies such as AI. The technology industry is dynamic and ever changing and it appears that Apple is just as determined to remain on the hit list by making sure they are putting their money in the right places.
They are trying to make changes to assure that they keep on being able to grow and make advancements.
Are We Wrong About Apple?
While these measures are regrettable where employees are concerned they are not a massive portion of Apple’s employment. Depending on a company’s size, the reduction of 100 positions can be compared to cutting 161,000 employees’ worth in hair. You may feel that the facial structure is slightly changed, but the layout remains relatively similar.
