Apple is attempting to avoid mass layoffs by all means. Faced with the current economic downturn, other large enterprises such as Amazon, Alphabet, and Meta have been doomed. The truth is, Apple acted with greater forethought and hired more efficiently.
Apple made the decision to hire fewer employees than other businesses in the sector during the Covid-19 epidemic, and this seems to be beginning to produce efficient results. The American corporation is doing so because, by the way, it is avoiding mass layoffs as it has already done in others.
During the epidemic, technology companies began to recruit personnel in order to improve their efficiency and results, predicting that changes in lifestyles, such as remote work, or e-commerce expenses, would keep them up and increase their profits.
Apple, which was cautious in the aftermath of the epidemic, increased its workforce by only 20% from 2020 to 2022, compared to Alphabet, which has now announced more than 3,000 layoffs.
Although layoffs are a natural and recurring feature within the economy and technology industries, they would be much more difficult for them to justify. Apple remains much more profitable than other businesses in the sector, considering that only in the last quarter it raised 30,000 million dollars.
heApple's stock has risen 20% in the first months of 2023, and the company is expected to unveil a new operating system and a mixed reality headset in just three months, a move that will take them beyond the iPhone.
Apple made mistakes, and they want to avoid it at all costs, according to the company that was founded by Steve Jobs among others.
Apple's sales fell by 5% in the last quarter and are expected to continue to decline due to the sector's insolvency. That is why the company continues to prepare to avoid a worsening situation.
- Delay of bonuses for corporate teams that were previously paid twice a year. Now the bonds will be received in October and in full.
- Delay of new projects They hope to be on the market soon. That’s the case with the HomePod home device. Now Apple will be able to allocate that research and development budget to other more urgent projects.
- Budget control with the approval of his vice president.
- Hiring Stop of Equipements.
- Dismissal during 2022 non-full-time employees.
- Reduced travel budgets. From now on the money earmarked for this must be approved by senior executives.
- Lack of recruitment. The company is leaving open positions both in positions where there is a permanent lack of staff and in cases of sick leave.
- Elderly control of attendance at work.
"I view layoffs as a last resort," Tim Cook told the Wall Street Journal, although he did not rule them out explicitly: "You can never say never. We want to lower costs as much as possible."
In reality, Apple has been better placed than its competitors because of a lower payroll growth during the epidemic, but the company could reduce its workforce in a much more discreet manner.