- Apple is widening its reach on hiring slowdowns
- Apple plans to reduce bonus frequency for select employees
- Cost-cutting measures come amidst a decline in revenue for Apple
- Apple's response to worldwide economic downturn remains different from its counterparts
Apple is expanding its freeze on hiring to incorporate even more positions, while suddenly delaying bonuses for select employees, according to a report from Bloomberg.
Apple is delaying bonuses for certain corporate divisions and cutting costs by limiting hiring, according to the report. These changes echo other measures planned by the Cupertino-based company in response to uncertain times.
The report indicates that the hiring stoppage applies to several Apple divisions, including teams working on future products and other long-term initiatives. Apple is also reportedly leaving open positions unfilled as a method to slim down its workforce and reduce costs instead of firing employees outright.
Bloomberg also details Apple’s plan to reduce the frequency of bonuses for some members of its corporate workforce. While employees are still expected to receive their full bonuses, Apple has switched from a twice-per-year bonus structure to a once-per-year bonus schedule with extra funds not being paid out until October of this year. Normally, employees would receive a portion of their bonus in April.
Apple CEO Tim Cook is set to collect a whopping $49 million in salary, stock awards, and bonuses this year, which is a notable reduction of over 40% compared to his total compensation of $99 million in 2022, according to a filing with the SEC.
These announcements follow a number of other cost-cutting measures that indicated Apple had begun to slow hiring and reduce spending as far back as July 2022, according to another report from Bloomberg. By November 2022, Apple had ceased hiring for most jobs, excluding research and development roles. Apple’s Q1 2023 financial results revealed a notable 5% drop in year-over-year revenue, with a projected decline in iPad and Mac revenue amidst a worldwide economic downturn.
Apple’s cost-cutting approach of slowing hiring instead of firing contradicts the mass layoffs conducted by other tech giants, including Meta, Twitter, Microsoft, and Google. According to a CNN Business report, after Elon Musk’s acquisition of Twitter, over 3,700 employees were fired from the social media juggernaut. Meta and Microsoft have already shrunk their workforce by firing over 10,000 employees, as reported by The New York Times and The Verge.
