Apple is conducting layoffs affecting around 100 employees working for the company’s digital services group, according to Bloomberg’s Mark Gurman. The main group affected by the cuts is the team working for the Apple Books app and its related store.
Introduced in 2010 by then-CEO Steve Jobs in conjunction with the iPad’s debut, Apple Books hasn’t been the “Kindle-killer” that Apple expected. These job cuts indicate Apple Books isn’t going to be an investment area for Apple going forward. The team working for Apple News is also affected by the layoffs, as well as other services teams.
During Apple’s last quarterly earnings, services represented 28% of its revenue. However, a significant portion of that revenue likely comes from in-app purchases and App Store subscriptions. It’s unclear whether Apple will be able to maintain its grip on mobile app distribution in a changing regulatory landscape.