Apple freezes new hirings, delays promotions, bonus payments to cut costs

Apple is freezing hiring for more jobs and will leave additional positions open when the employees quit, Bloomberg reported while citing people familiar with the situation. The company is also postponing the bonuses for some of its corporate divisions, the report added.

The move is set to reduce the frequency of bonuses for a part of Apple’s corporate workforce, translating into significant cost cutting for the company.

In the past, Apple has rolled out bonuses and promotions once or twice per year depending on the division. 

The twice-a-year teams usually saw these rollouts in the months of April and October.

Under the new plan, all divisions will move to an annual schedule — with the payments occurring only in October instead of April and October as was the case earlier.

The once-a-year schedule for bonuses and promotions was an affair of biannual prominence in Apple’s operations and corporate retail divisions. 

Apple is the world’s most valuable company. It began its cost cutting effort last July as inflation and recession fears stoked it to take a more cautious stance. The iPhone maker, however, has so far managed to avoid the kind of mass layoffs.

ALSO WATCH | Gravitas: Tech layoffs: Is your job safe?

Apple is facing a slowdown in sales which has added pressure to its operations. Revenue decreased 5 per cent during the holiday quarter, a steeper drop than the projections. It further hurt the iPhone production amid declined demand for Macs and wearable devices. 

Sales are expected to fall by a similar amount in the current period, Bloomberg reported.

During Apple’s shareholder meeting last week, Chief Executive Officer Tim Cook said the company continues to be careful with the finances. 

“We are being very prudent and thoughtful on spending and we continue to be very deliberate when it comes to hiring,” he told shareholders.

(With inputs from agencies)

 

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.