Apple Cuts Jobs and Meta Shutters AR Studio Amid Industry Shift To AI
Big tech companies like Apple and Meta are cutting jobs to focus on AI. (Photo by Costfoto/NurPhoto via Getty Images)
Key Takeaways
- Apple has laid off around 100 jobs across its Services arm.
- Meta has shuttered Meta Spark, an AR studio that allowed developers to create digital filters for use in Facebook, Instagram, and Messenger.
- The global technology industry continues to pivot towards AI.
As industry technology increasingly shifts to AI, some of the world’s biggest companies are making internal changes to stay ahead of the competition.
On Tuesday, Aug. 27, it was reported that Apple was cutting around 100 jobs in its digital services group.
At the same time, Meta announced that it would close its augmented reality studio to redirect resources to higher-priority areas, including its AI business.
Apple makes rare cuts to services.
Bloomberg, citing people familiar with the matter, reports that the sweeping cuts at Apple reportedly affected teams working on Apple News, Apple Books, and some engineering roles.
Historically, Apple’s services arm has been a key growth driver for the company. In 2023, the services segment generated over $80 billion , accounting for more than 20% of the company’s total revenue.
The revenues are achieved through impressive operating margins. Services like iCloud and Apple Music operate at margins above 70%, a significant increase from 36% for its products.
As per the publication, employees were told they would have 60 days to find another job within Apple before being terminated.
Although Apple suffered four rounds of layoffs in 2024, the iPhone maker’s job cuts are still lower than those of the rest of the industry.
According to Layoffs .fyi , as of Aug. 28, 412 tech companies layoffs have laid off 134,061 employees in 2024.
At the beginning of the month, global PC maker Dell announced it would lay off thousands of employees as part of a reorganization of its sales teams.
Meta shutters AR studio
Meta announced it would close Meta Spark, an AR studio that allowed developers to create digital filters for use on Instagram, Facebook, and Messenger.
“We’ve made the difficult decision to shut down the Meta Spark platform,” the company said in an update on its website, stating it would be prioritizing investments in other company priorities.
“On Jan. 14, 2025, AR effects built on Meta Spark by third-party creators will be removed from Meta products, including Facebook, Instagram and Messenger,” the company wrote.
Mark Zuckerberg’s Meta has seen limited returns on his investment in virtual reality, AR, and the metaverse so far.
Like the rest of the industry, Zuckerberg pivoted Meta’s focus to AI. The CEO claimed that AI technology would be the biggest focus for the company in 2024, with plans to spend up to $40 billion on data centers, hardware, and servers.
Tech Companies Great AI Race
Since the release of OpenAI’s ChatGPT in November 2022, Big Tech and the broader technology industry have entered an AI development race.
The runaway success of ChatGPT, reaching one million users in just five days, shifted the tech industry’s focus toward AI as a central product rather than as a tool to expand an existing product.
Tech companies have accelerated their AI initiatives, leading to rapid advancements, increased competition, and a broader integration of AI across industries.
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