TECH NEWS – Even though the Cupertino-based company raked in a staggering profit, it wasn’t enough to keep all of its employees.
Last quarter, Apple generated $90.75 billion in revenue and a whopping $23.6 billion in profit, but Bloomberg reported that the tech company laid off 100 people from its services division. This is the fourth time we’ve had to report layoffs, but the surprise this time is which division the company cut. After all, Services is a segment that has shown amazing growth in recent quarters…
There are several products under Services. For example, Apple Books and Apple News. According to Bloomberg editor Mark Gurman, it was mainly engineering positions that were affected by the cuts. Apple News will continue because the company can make a lot of money with it. But Apple Books will be less important because it is not doing well in terms of cash generation. The Cupertino company is not very interested in introducing a subscription model for the Apple Bookstore.
This category is dominated by Amazon and its subscription service Audible. The e-book market is not big enough for Apple to be serious about it, and even if the company were to introduce some kind of business model in the future, it is not so sure that it would be a convincing business model for authors and publishers. Apple’s cuts are not as big as other companies, as Apple CEO Tim Cook said a year ago that they would consider cuts as a last resort.
Last year, Cook cut his annual salary to $40 million, a 40% reduction, in order to ease the financial burden on the company. But even that wasn’t enough for Apple to reduce its workforce. The cancellation of Project Titan, the self-driving car project, was the hardest hit, with 700 people losing their jobs…
