In the past months, Apple’s rivals have laid off more than 50,000 people combined. That’s equal to nearly half of Apple’s corporate workforce.
We keep reading reports of layoffs happening at big companies. Meta has announced to Cut 10000 jobs in the second round of layoffs. Wipro, Credit Suisse, Disney, and many other firms have also announced job cuts. Amidst this, Apple remains the only firm that has not resorted to mass layoffs.
According to popular Apple analyst – Mark Gurman, ‘Apple is pulling every lever it can to cut costs enough to avoid laying off full-time employees. In the latest edition of its Power On newsletter, he says that ‘Apple’s top executives are seen as some of the most tactical minds in the industry. Layoffs would either signal that they’d made a strategic blunder or the global economy is in even worse shape than people feared.’
He says that the company is taking several steps to avoid layoffs. For example, Apple has delayed bonuses for corporate teams that previously received payouts twice a year. Those teams will now get their entire bonus in October. The Cupertino-based firm has also pushed back some of its projects including new home devices like a HomePod with a screen until next year at the earliest.
The company has reined in budgets across several teams and is now requiring the senior vice president’s approval for more items. Further, Apple has completely paused hiring on some teams and severely limited hiring on others. It is not filling the current open positions too.
In some cases, the company has also limited the ability for employees — both in corporate and retail — to transfer to other departments or stores, a process that typically has accompanying costs. Apple has also reduced travel budgets. As per the newsletter, trips now require the approval of senior executives.
“For some departments, travel has been halted completely for the foreseeable future other than for business-critical reasons,” it adds.
Managers have become as strict as ever about office attendance which some workers believe is a harbinger of the company firing employees who don’t meet the requirement. Some staffers also believe Apple is taking a tougher line to get employees to quit, saving the company money, the newsletter states. For its retail employees, Apple is getting rid of “special sick time” for time missed due to Covid, asking staffers to use normal sick time instead or not get paid.
Combined, Apple’s rivals have laid off more than 50,000 people in recent months. That’s equal to nearly half of Apple’s corporate workforce. While some of the moves mentioned above seem tough, ‘they’re mild compared to what many companies have done.’
