Apple Inc. will delay bonuses for some corporate divisions and will also limit hiring for more jobs as it expands cost-cutting efforts, Bloomberg reported citing people familiar with the matter.
The tech giant will reduce the frequency of bonuses for a portion of Apple’s corporate workforce, as it expects to cut costs amid weak financials.
Regarding its hiring plans, the report said the company is expanding its hiring freeze and will leave additional positions open when employees depart as a way to cut down on the workforce.
Last year, the company had paused hiring for most jobs in its efforts to cut down costs, except teams working on future devices and long-term Apple initiatives.
Apple generally provides bonuses and promotions once or twice per year depending on division. As per the latest change, the company is shifting entirely to a once per year bonus schedule.
During its first-quarter earnings call, Chief Executive Officer Tim Cook said the company is doing a lot of work on the cost structure, and that is paying off.
In January, Apple in a regulatory filing disclosed that it was cutting its Cook’s target compensation by more than 41% in 2023, citing investor guidance and a request from Cook himself to adjust his pay. Cook’s target compensation would be reduced to $49 million in 2023 from $84 million in 2022.
In its latest first quarter, the company’s earnings declined following a five percent drop in revenue to $117.2 billion. Cook attributed the weak results to foreign exchange headwinds, which had a nearly 800 basis point impact, to COVID-19-related challenges, as well as to a challenging macroeconomic environment as the world continues to face unprecedented circumstances from inflation, war in Eastern Europe, and the enduring impacts of the pandemic. On a constant currency basis, revenues increased.
Apple is yet to announce any layoffs when majority of its tech peers have been implementing thousands of job cuts recently due to slowing growth, and ongoing macroeconomic conditions amid recession fears.
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