Tech giant Apple (AAPL) has laid off about 100 employees from its digital services unit, as per a Bloomberg report. The layoffs affected engineering roles, particularly in the Apple Books app and bookstore teams, with additional cuts in the Apple News team. This strategic move reflects the shift in AAPL’s focus toward other core areas within its business, particularly artificial intelligence (AI) initiatives.
This round of job cuts follows Apple’s April layoff of over 600 employees due to the discontinuation of its electric vehicle project. These actions underscore the company’s ongoing efforts to streamline operations and allocate resources more strategically.
Layoffs Sweep Tech Sector
Apple’s layoffs reflect broader industry trends, as tech giants like Cisco Systems (CSCO), Microsoft (MSFT), and Intel (INTC) have also announced significant job cuts in recent months. These decisions were primarily driven by economic uncertainty, overhiring during the pandemic, and the rising need to invest in AI development.
Earlier this month, Cisco was reportedly considering a second round of job cuts after eliminating 4,000 positions in February. Similarly, Intel revealed plans to reduce its workforce by thousands to cut costs in late July. Further, Microsoft undertook a third round of layoffs in July to streamline organizational processes.
Is Apple a Buy, Sell, or Hold?
AAPL has a Moderate Buy consensus rating based on 24 Buys, nine Holds, and one Sell rating assigned by analysts in the past three months. The analysts’ average price target on Apple stock of $247.61 implies 8.59% upside potential. Shares of the company have gained 19% year-to-date.
