A series of layoffs initiated by large technology companies would frequently prompt people to wonder if Apple would follow suit in 2023. Tim Cook, the CEO of Apple, previously stated in 2022 that the company would be “deliberate” in its hiring, implying that only key or talented individuals would be hired for the remainder of the year. This could be why, according to a new report, the company has begun laying off non-seasonal employees in the retail sector.
Microsoft announced on January 18 that it will lay off 10,000 employees, reducing its workforce by 5%, and Amazon began layoffs that will eventually result in the loss of over 17,000 jobs. Microsoft and Amazon are joining peers in the tech industry, such as Alphabet and Meta, in laying off employees in recent months.
Most companies that are laying off employees blame it on macroeconomic conditions and the possibility of a future recession. However, one factor that has gone unnoticed is how quickly tech firms hired during their expansion phases.
Apple, on the other hand, is an anomaly. It has not increased its hiring rate or announced any layoffs in the last two years.
Microsoft had 221,000 full-time employees at the end of June 2022, according to the most recent official figures. That was a 40,000-person increase from the same time in 2021, representing a 22 percent increase in staff. Microsoft added 18,000 employees in the previous year, an increase of 11%.
As the company expanded rapidly, Amazon added a record 310,000 jobs in 2021. As a result, it added half a million employees and will grow by more than 38% by 2020.
AppleInsider reported that Apple has begun laying off employees outside of its physical stores. The email has reportedly been verified by multiple sources, with the contents stating that Best Buy employees have received a 30-day notice regarding their rights. It is unclear how many employees Apple intends to lay off as part of its cost-cutting measures, but the company is clearly preparing for a slow 2023.
Apple expected its two top-tier models, the iPhone 14 Pro and iPhone 14 Pro Max, to generate significant revenue where the less expensive iPhone 14 and iPhone 14 Plus failed. Unfortunately, because Foxconn was forced to implement a temporary lockdown in its Zhengzhou, China facility in late 2022 due to an increase in COVID-19 cases, Apple issued a press release, a rare move for the company.
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