According to a recent Bloomberg story, Apple has extended its hiring freeze to cover more positions in light of declining revenue. Also, the business intends to postpone some employees’ incentive payments.
After cutting down recruiting and spending in July last year, Apple stopped hiring for most positions outside of research and development late last year to reduce costs. Teams working on long-term Apple initiatives and future devices were exempt from the employment ban. Still, more positions are now covered by the freeze. Apple is leaving roles available to minimize its personnel as people leave the company.
Apple also intends to lower the frequency of bonuses for some of its corporate workers in addition to halting hiring. Apple often offers bonuses and promotions once or twice a year, depending on the division. The extra cash is distributed in April and October. Nonetheless, the business is completely switching to a once-per-year bonus plan. Employees will continue to receive their full bonuses, and bonus payments will be made to all teams in October.
Tim Cook, the CEO of Apple, will likewise make less money this year. Compared to the $99 million he was paid in 2022, his salary, bonuses, and stock awards are expected to total $49 million.
Apple, in contrast to many other IT businesses, has not announced layoffs, choosing to concentrate on reducing hiring. Following Elon Musk’s purchase of the company, Twitter has laid off hundreds of staff. Facebook only recently disclosed plans to let go of 10,000 workers. Microsoft terminated its AI ethics team this month following many previous dismissals. At the same time, 12,000 people were let go by Alphabet, the parent company of Google.
Apple’s sales decreased by 5% in the first fiscal quarter of 2023 compared to last year. The business anticipates a significant Mac and iPad revenue reduction for the second fiscal quarter, resulting in comparable sales figures.
