Finance & Economics

Apple Cuts Spending on Bonuses, Hiring and Travel

The media reports that Apple has decided to actively reduce costs.

Apple Cuts Spending on Bonuses, Hiring and Travel

Source: Pixabay.com

By starting to cut costs, the American technology giant has abandoned the practice of mass layoffs, which many other large companies operating in the same sector resort to.

The media, citing anonymous sources, reported that Apple temporarily waives bonuses, restricts the hiring of new employees, and reduces the number of worker’s trips. Divisions of the company that previously received bonuses twice a year will now receive them once during this period. But there is information that high-ranking employees of the firm will receive bonuses quarterly.

Also, the company is now less actively hiring new employees. The firm prefers to leave some vacant positions empty than hire new workers. Work trips are now coordinated with higher-level bosses. Previously, the approval process involved deciding a lower level in the management hierarchy.

Apple’s revenue for the last quarter decreased by 5% year-on-year. Tim Cook, CEO of the company, explained the decrease in this indicator by restrictions due to the coronavirus pandemic and the global failures provoked by them, which slowed down the process of supplying products of the new iPhone 14 Pro and iPhone 14 Pro Max line and other equipment.

The firm made its first efforts to reduce costs back in July last year. This decision was justified, as the company managed to avoid a massive reduction in the workforce. Cost optimization is a response to the uncertainty in the global economy, which continues to persist.

Other tech giants have more radical reactions to the unfavorable situation in the global economy. For example, Meta plans to lay off 10 thousand employees shortly. In November, the company cut 11 thousand jobs and stopped hiring for 5 thousand vacancies. The head of the firm, Mark Zuckerberg, said that these measures are due to the return of online trading to previous volumes after a sharp increase during the coronavirus pandemic and adaptation to the new economic reality, where interest rates are rising, government regulation is tightening and geopolitical tensions are observed.

As we have reported earlier, Apple Pay Set to Launch in South Korea.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.