Apple fires some employees in rare move to limit spending

Like many other tech companies, Apple is making crucial decisions to endure the global economic downturn. But it has rarely handed out pink slips. Except for this time. Apple has reportedly laid off several contractual recruits in the last week to restructure the company’s hiring and spending. As many as 100 contract-based workers were fired in what was supposedly a private affair.

Bloomberg has reported that Apple has let go of its contractual workers who were responsible for hiring new talent for the company. The terminated workers would be eligible for severance and medical benefits for two weeks, per the report. They were asked to email a list of their belongings that they wanted to be returned. Their employee badges were also disabled. Apple fired contractors across several regions, including its offices in Singapore and Texas.

The latest layoff of recruiters suggests that a hiring slowdown could be imminent at Apple. The report said the layoffs were a part of Apple’s current business needs, which recently included decelerated hiring.

At a recent earnings call, Apple CEO Tim Cook said there will be a focus on “deliberate” spending at the company. Since Apple did not want the slowdown to impact the company’s ability to invest in some areas, layoff emerges as the most feasible way to control spending. Cook said that Apple believes in investing “through the downturn” and will continue to “hire people and invest in areas.” He added that the company will do all of that by “being more deliberate” so that the “realities of the environment” are considered.

While some contractual recruiters have been shown the exit, full-time employees are still a part of the company. And not all contractual workers were fired. But firing around 100 employees is a rare move by Apple. With a workforce of over 150,000 people worldwide, Apple has hardly ever fired its employees, unlike its rivals such as Meta, Microsoft, and Amazon, which have been downsizing their staff to respond to the downturn better. The last time Apple made such a move was in 2019, when it let go of a large group of contractors in Ireland deputed to listen to the recordings of Siri conversations for product improvement.

 

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