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Apple has largely avoided large-scale layoffs at many of its rival companies, including Google and Amazon, but recent news suggests the billion-dollar company is struggling.
Per Bloomberg (opens in new tab) (paywall), Apple is delaying bonuses for some teams and spreading the hiring ban to more business units.
Despite a shake-up in the way it handles its money, Apple CEO Tim Cook stressed in an interview with The Wall Street Journal (opens in new tab) in February 2023 that major layoffs are a “last resort”.
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Currently it seems that the business computer maker has no plans to lay off staff due to the severe economic headwind of 2023, but the company is clearly tying up loose ends in its operations to streamline its finances.
Bloomberg reports changes to engineers’ and middle management’s bonuses, moving from biennial (April and October) to annual, requiring employees hoping for a bonus next month to wait until the fall to receive what would have been two amounts delivered in one.
The report suggests that executive-level and senior employees will continue to receive quarterly bonuses.
Permitted expenses were also reported to have come under scrutiny, with more employees facing stricter travel allowances and more budget items appearing on the list of those needing approval from the senior vice president.
Even though the company has had an office mandate of three days a week for some time, this will be more strictly enforced. It is unclear whether there will be consequences for staff who do not comply sufficiently.
How the state of the global economy plays out remains to be seen, but with Apple posting its first quarterly decline in nearly four years last quarter, the company may need to adopt a more offensive cost-cutting strategy.
