Apple is one of the few major tech companies which is yet to announce layoffs amid the ongoing global economic downturn. In the past few months, we have seen layoffs from Google, Microsoft, Amazon, Meta (another 10,000 layoffs were announced just yesterday), and more. While the Cupertino firm still isn"t letting go of employees yet, it is taking measures to reduce costs internally.
According to unnamed sources who spoke to Bloomberg, Apple is delaying bonuses for some corporate divisions. This primarily affected divisions who received bonuses twice a year. Under the new strategy, their bonuses will now be handed out in October, like all other divisions who receive annual bonuses. Previously, one of their two bonuses was scheduled for April.
Moreover, Apple has removed headcount goals as well. Sources within the company say that new hiring is being "limited" and when a current employee leaves their job, their position is typically left vacant.
It is important to note that the bonus amount isn"t being reduced, it will just be bundled as a single bonus rather than divided into two. The move will affect corporate retail employees, engineers, and mid-level managers. Many employees switch jobs after receiving bonuses so this could also retain such workers until at least October. However, it will adversely affect people who were eagerly awaiting bonuses for personal budgeting.
Senior employees who are directors or at an even higher designation are reportedly not affected, with their bonuses still being doled out on a quarterly basis.
Although Apple has already laid off some contractors, reduced travel budgets, and cut pay for its CEO Tim Cook, it remains to be seen to be seen how effective the latest measures are in reducing overall costs. Some employees and retail workers have already cited concerns that their working hours and office days are being more closely scrutinized, fearing that this could be used as the basis for their firing. A few have also noted that they feel like they are being encouraged to quit themselves by being asked to work more than they are contractually obligated to.
Source: Bloomberg (paywall)