Apple Implements Cost-Cutting Measures to Avoid Layoffs: Report

Apple: Shop with a Specialist over Video for the USA

As reported by Bloomberg’s Mark Gurman, Apple is doing everything it can to cut costs and avoid laying off full-time employees amidst an unstable economy. The company has recently introduced a new option to video chat with sales representatives at its US online store, and is gearing up for the next version of iOS, expected to be unveiled at WWDC later this year.

While other tech giants have already reduced their workforce, Apple has been working to maintain its reputation for stability and profitability. With a whopping $30 billion in earnings last quarter and a cash reserve of $165 billion, the company has been able to avoid layoffs so far. Apple’s stock has also increased by around 20% this year, further strengthening its position in the market.

The upcoming mixed-reality headset and operating system are expected to be unveiled within the next three months, providing additional momentum for the company. Layoffs at Apple would have a far greater impact on company morale and public perception compared to recent cutbacks at other big tech giants such as Meta, Amazon, Microsoft, and Google’s parent, Alphabet.

Apple’s top executives are renowned for their tactical prowess in the industry, and layoffs could be seen as either a strategic mistake or a sign that the global economy is in worse shape than anticipated. This could lead to repercussions throughout various industries and economies.

To avoid layoffs, Apple has implemented several cost-cutting measures, including delaying bonuses, pausing hiring on some teams, reducing travel budgets, and cutting back on contractors, says Gurman. The company has also been carefully monitoring work attendance and hours in its retail sector.

Although some employees have found these changes unsettling, they are far less severe than the measures taken by Apple’s competitors, which have collectively laid off over 50,000 people in recent months. So far, Apple’s strategies have been successful in keeping operating expenses below expectations.

However, as the world remains unpredictable, it is not possible to rule out the possibility of layoffs entirely. Apple CEO Tim Cook has stated that layoffs would be a “last resort” for the company, but has not entirely ruled out the possibility.