The latest round of Apple layoffs is indicative of a broader wave of crisis in the big tech industry.
Sources familiar with the matter have disclosed that Apple Inc. is reportedly reducing its corporate retail teams by eliminating a limited number of roles. This development marks the first publicized instance of the tech giant undertaking internal job cuts since initiating its cost-cutting campaign last year.
The company is specifically trimming positions in its development and preservation teams, responsible for the construction and maintenance of Apple retail stores and other facilities worldwide. Although the exact number of roles being axed is unknown and presumed to be negligible, this move is a noteworthy departure for the world’s most valuable company, as other industry players have resorted to reducing their workforce due to an uncertain economy and weak consumer spending.
How Apple layoffs will affect the industry?
The Cupertino firm has stated that the recent personnel reduction is intended to streamline operations, rather than being classified as Apple layoffs. According to the company, the objective of this restructuring is to enhance the upkeep of its global stores. Additionally, Apple has affirmed its commitment to support those employees who are impacted by the changes.
Despite cost-cutting initiatives that have resulted in trimming its budget and reducing its contractor workforce, which includes on-contract engineers, recruiters, and security personnel, the iPhone manufacturer has largely refrained from Apple layoffs. The only other publicly known instance of such action occurred prior to the pandemic, when the company let go of a few hundred members of its autonomous vehicle division.
Apple has informed affected employees that they may apply for similar roles to their previous positions. The company has also committed to providing a four-month salary package to employees who choose not to take on a new role. However, it is worth noting that a few management positions will be eliminated, and although these employees could potentially be rehired for lower-ranking positions, their compensation may not be the same, according to insiders. A handful of employees are not impacted and will retain their current positions without the need to reapply.
When contacted for comment, a representative of the Cupertino, California-based tech company declined to provide any further details on the matter.
As of September 2021, the conclusion of its last fiscal year, Apple reported a total workforce of 164,000 employees. Unlike several of its tech industry counterparts, the company did not undergo a rapid expansion of its employee base during the pandemic, which in turn mitigated the need for large-scale layoffs. Amazon.com Inc. and Alphabet Inc.’s Google are among the big tech companies that have reduced their workforce by tens of thousands.
Despite the economic uncertainty brought on by the pandemic, Apple had previously refrained from significant job cuts, setting itself apart from many of its peers in the tech sector. However, this recent move marks a notable deviation from the company’s prior approach.
In comparison to other industry players, Apple’s recent job cuts are significantly smaller in scale. However, it appears that the company can no longer claim to be an exemplar of avoiding employee layoffs. According to reports published on Monday, the jobs being eliminated are specifically within the division responsible for constructing and maintaining Apple’s retail stores.
Employees impacted by the restructuring have been given until the end of the week to apply for other available positions within the company. For those who are not able to find a suitable role, Apple is offering up to four months of severance pay as compensation, as reported by Bloomberg.
Although these reported layoffs mark the first instance of full-time employee reductions at Apple since the tech industry began making cuts, the company has been engaged in cost-saving measures through various other avenues. In an interview with The Wall Street Journal, CEO Tim Cook stated that layoffs were “a last resort” for the company. Last month, Bloomberg reported that Apple had let go of contractors, kept certain positions unfilled, slowed down hiring for specific departments, delayed bonuses, reduced travel budgets, postponed projects, and implemented other cost-cutting measures.
The recent Apple layoffs reinforces the notion that even the most valuable and prosperous companies are not immune to the unpredictable nature of the tech industry.
