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Tuesday January 31, 2023

How come Apple is not laying off employees?

While big businesses including Meta, Amazon have laid off thousands of employees, Apple has avoided making any layoffs

By Web Desk
January 22, 2023
Apple has employed at a much more modest rate than its competitors, adding only 17,000 people between 2020 and 2022.— AFP/file
Apple has employed at a much more modest rate than its competitors, adding only 17,000 people between 2020 and 2022.— AFP/file

Microsoft said on Wednesday that it would be firing 10,000 employees. With an additional 12,000 yesterday morning, Alphabet made things worse. Previously, 18,000 jobs at Amazon and 11,000 at Meta were cut. Salesforce, which cut 7,000 jobs at the start of the month, could also be included.

You might have noted that one corporation is glaringly absent from this appalling list: Apple. Up to this point, Apple has avoided making any layoffs.

It's important to note that the business hasn't seen many significant layoffs; the last significant one occurred in 1997 when Steve Jobs took over again and fired 4,100 workers. 

For a variety of reasons, depending on the organisation, the aforementioned businesses saw rapid growth during the pandemic's peak, but all of them greatly increased their employee bases between 2020 and 2022. These businesses felt it was time to make a change when the economy slowed throughout 2022, and as a result, we have witnessed significant layoffs.

Apple has employed at a much more modest rate than its competitors, adding only 17,000 people between 2020 and 2022, while the other organisations added a tonne of staff. Its lack of significant layoffs may be explained by the fact that it didn't hire as many new staff as the other companies, reported Tech Crunch.

The only layoff news from Apple thus far was a fairly minor one. According to a Forbes article from August, the business secretly fired 100 contract tech recruiters. That may seem minor in a corporation with more than 160,000 people, but it may have indicated that at the very least, hiring was stalling.

Even while Apple said it would continue to hire for some positions, there was a general hiring freeze in response to the general economic concern that all of these companies are feeling.

The employment cuts have also been significantly influenced by the changing economic environment and general unpredictability as we approach the new year, although Apple has so far refrained from utilising layoffs as a strategy.