Apple is taking multiple measures to actively reduce costs
In recent months, numerous American technology companies have opted for substantial layoffs to confront declining market demand and looming recessionary risks in the macroeconomic landscape. Apple is among the few enterprises defying the odds, maintaining relatively stable revenue growth and ample cash reserves. Nevertheless, it must adopt measures to address uncertain future market risks and the global economic downturn.
As an industry leader, Apple’s actions serve as a barometer. If even Apple inevitably resorts to layoffs, it signifies a dire market situation. According to Wccftech, Apple is currently implementing various cost-cutting measures to minimize layoffs, which CEO Tim Cook considers a last resort.
Last year, Apple slowed down new employee recruitment and reduced budgets for certain teams. This year, further measures have been taken, including a 40% pay cut for CEO Tim Cook, from $84 million in 2022 to $49 million this year; postponing employee bonus disbursements, consolidating payouts to October, thus preserving cash reserves for longer duration; delaying projects, such as screen-equipped HomePods; more stringent budgetary control, necessitating senior vice president approval for numerous projects; stricter recruitment policies, even suspending hiring for some teams, with departing employees not necessarily being replaced; reduced travel budgets; and a decrease in non-full-time employee numbers.
Industry insiders assert that Apple’s executives are considered the most tactically astute in the sector. If layoffs ultimately transpire, either strategic blunders have been made, or the global economic situation is worse than feared. Either reason profoundly undermines employee morale and influences public perception, inciting ripples across various industries and economic operations.