Apple is trying its best to avoid layoffs; Find details

Apple is the only major tech giant that hasn't resorted to layoffs to cut spending. However, it appears that the iPhone maker is doing its best not to follow the path that rival companies such as Meta, Microsoft, Google and Twitter have taken by following some strict cost-cutting ways. In the most recent financial quarter (October to December 2022), Apple posted revenue of $117.2 billion, down 5 per cent year-over-year. Apple may see growth in the current quarter as supply issues for the iPhone 14 Pro, and 14 Pro have been resolved, but one cannot be sure given the macroeconomic challenges.

As per an Apple analyst and Bloomberg's Mark Gurman, Apple's top executives are believed to be the most tactical minds in the industry. In his new edition of the Power On newsletter, he says the layoffs would indicate a strategic mistake was made or that the global economy is in worse shape than people feared. It was shared that Apple is delaying bonuses for some corporate employees and limiting their hiring. Other steps include:

• Reportedly Apple is delaying production of the next-generation HomePod with a display until next year. The company is likely to want to allocate "its research and development budget to more pressing projects."
• As said, some corporate teams will get the budget later. Apple also awards bonuses and promotions twice a year to some teams based on their performance. This year, the company will delay its April promotion, which employees get directly in October.
• Apple has also stopped hiring some teams, and departments are operating on strict budgets. The bulletin notes that the company has controlled budgets across multiple teams and now requires the senior vice president's approval for more items.
• In addition, employee travel budgets have been "significantly reduced."
• According to reports, managers and HR have become stricter than ever regarding office attendance. Apple's main US division is operating on a hybrid model in which employees must come to the office thrice a week.
• Apple is also getting rid of "special sick time" for time lost due to COVID-19. Now, retail employees have to use regular sick leave to mark days off. As employees at Apple retail stores are having a tough time as well.

Gurman says Apple may bounce back with its new tablets and the introduction of mixed-reality headsets. Apple has also been conservative with its hiring during the pandemic. On the other hand, Apple's main rivals laid off more than 50,000 employees in the past few months.