If a new Bloomberg report is correct, Apple may have finally laid off some employees. The article says the tech giant is eliminating a small number of roles within its corporate retail teams.
Quoting unnamed “people with knowledge of the matter,” Bloomberg says this marks Apple’s first known internal job cuts since it embarked on a belt-tightening effort last year.
From the report: The company is shedding positions in what it calls its development and preservation teams, said the people, who asked not to be identified because the move hasn’t been announced. Those groups are responsible for the construction and upkeep of Apple retail stores and other facilities around the world.
Purportedly, Apple isn’t classifying these are layoffs. The company told employees that these aren’t layoffs, but streamlining. Bloomberg says Apple describes them as changes to improve the upkeep of its global retail stores. Those who were cut have the option to reapply for positions similar to their prior job, and those who do not take on a new role could get up to four months of pay, the article adds.
Some management positions are also reportedly being eliminated. Apple hasn’t commented on the report.
The tech giant has previously implemented some belt-tightening matters. March filings last month with the state of California showed that 618 security guards and personnel who worked at Apple’s offices in Silicon Valley and elsewhere in the state have been laid off, but Apple says a majority have been or will be rehired.
An Apple spokeswoman told MarketWatch today that the tech giant is changing security vendors, and that its new vendor will rehire most of the security personnel, though she did not give a specific number.
“We are adding several new security vendors who will join our existing vendors in providing security services at our facilities in the U.S.,” the spokeswoman said. “The majority of security guards impacted by this transition have already accepted positions with the new vendors and we’re working closely with our partners to ensure a seamless transition.”
Also in March, it was reported by Bloomberg that Apple is delaying bonuses for some corporate divisions and expanding a cost-cutting effort in an effort to streamline operations during tough economic times.
Quoting unnamed “people with knowledge of the situation,” the article says the shift will reduce the frequency of bonuses for a portion of Apple’s corporate workforce, said the people, who asked not to be identified because the plan hasn’t been announced publicly. Separately, the company is limiting hiring for more jobs and leaving additional positions open when employees depart, added Bloomberg.
And in February The New York Post reported that Apple had quietly begun axing contractors. The article said that the tech giant started to cut ties with hundreds of contractors — workers technically employed by outside agencies who work alongside Apple employees on projects. Instead of waiting for contracts that are typically renewed every 12 to 15 months to expire, Apple is dismissing contractors outright, according to The Post.
This wasn’t the company’s first such move. In August 2022, Bloomberg said the company had laid off many of its contract-based recruiters. The article said “the decision stems from a move to be more careful during uncertain times, though it isn’t a companywide policy.” Purportedly, the changes won’t affect all teams.
In a January 31 report, Webush analyst Dan Ives said Apple’s Tim Cook is “a Hall of Fame CEO” who will avoid layoffs because he didn’t overtire during the pandemic unlike some of the company’s rivals.
“Apple never hired at the pace of these other tech giants,” he said on Yahoo Finance Live. “You’ll see cost-cutting around the edges, but Cupertino — I mean, they’re tacticians…I think it just shows why Cook is a Hall of Fame CEO. And I think he’s able to navigate another situation here in terms of not needing to do the layoffs that other tech firms have done.”
Apple’s employee count only rose by about 7% in 2022 compared to 2021, according to company reports. If Ives’s prediction holds true that Apple will avoid mass layoffs, it will be the exception in tech, notes Yahoo Finance.
