Apple appears to be the only top-ten companies of the world that hadn’t announced any mass layoffs like Google, Amazon, Meta and Microsoft.
As the world foresees recession in 2023, fortune companies reallocate its financials to be a miser and are thus left with mass layoffs for limiting the losses amid the downtrend.
Top tech companies like Google, Microsoft, Meta and Amazon have joined the mass layoffs, sacking thousands of employees across countries. However, Apple becomes one of the top tech firms that hadn’t announced any layoffs like its peers. And the page will get you the reason behind it.
Companies’ Layoff Trend
Economic uncertainty had pushed companies to possibly cut their employees and some companies like Yahoo had already reduced 20% of its workers recently. The number increases day by day and the road is unclear through the windscreen with more possible cuts expected in 2023.
The technology sector has hit the worst of 102,943 job cuts in January 2023, which is a 136% increase from 43,651 cuts done in December 2022. Amazon, and Google tops the list of layoffs cutting 18,000 and 12,000 jobs, while Meta and Microsoft had cut 11,000 and 10,000 workers.
Report says, the world had witnessed 159,000+ layoffs among 1044 tech companies in 2022, and it had already reached 1lakh just in the first month of 2023. In India, startups are the most affect, with 21,500+ employees losing their jobs till Jan 2023.
And Apple hadn’t Cut the Jobs because…
Till date, Apple remains to be the only major tech giant to not hugely sack employees. The foremost reason of this is Apple hired efficiently in the first place, especially during the pandemic, where other companies failed to do so, recruiting thousands.
According to reports, Microsoft had almost hired 40,000 employees in 2021, which is a 11% increase from 18,000 newbies in 2020. Likely, Amazon added 310,000 jobs last year, which is a 38% increase from 2020. And, Google and Meta too hired adding 21,000 and 13,000 in 2021.
And in whole, Google had a 60% gain in the headcount and Amazon nearly doubled it, between 2019 and 2022. Meanwhile, Apple is the least with just an increase of 20% from 2020 to 2022.
Apple didn’t fall into this massive hiring process, and it had added only 20% from 2020 to 2022, Bloomberg reports. Apple’s business primely relies on hardware, unlike its peers who are service providers. A higher demand for services typically leads to increased hiring, whereas Apple can operate with the same workforce while increasing the production of its hardware. Apple generated a stubborn revenue even during the pandemic.
Apple is Frugal
“Apple is frugal by nature,” said Credit Suisse Group AG analyst Shannon Cross. “It comes down to the management’s stewardship of shareholder dollars and a tight focus on what growth opportunities to invest in.”
Apple did laid off some of its retail executives, but the headcount was less than 100, AppleInsider reported. In fact, Apple had last the mass layoffs in 1997 when Steve Jobs returned as the chief, where it fired roughly 4100 workers. Since then, Apple avoided mass layoffs and is still on the track.
Also, Apple’s CEO Tim Cook will receive a big pay cut in 2023, and the filing noted that he himself requested the cut. “Mr.Cook’s 2023 target total compensation is $49 million, a reduction of over 40% from his 2022 target total compensation,” the filing noted. Tim Cook received $99 million in 2022 as a whole compensated salary, with base salary at $3 million per year.