Apple is reportedly putting off incentive payments for workers in some corporate divisions and extending a cost-cutting drive in an attempt to simplify operations amid uncertain times.
In a report by Bloomberg, some teams were previously scheduled to get bonus payments in April and October but would now receive the whole sum in the autumn. Moreover, Apple is allegedly being more cautious with its travel spending and is keeping certain jobs empty.
This approach is the latest evidence that Apple is lowering costs and keeping a tight eye on corporate spending as the tech sector experiences a downturn and rivals like Google, Meta, and Amazon lay off employees.
Implications of No Layoffs
Although Apple has not had any layoffs, it has reduced recruiting significantly in several departments apart from engineering.
"Well, we invest for the long term, and we run the company for the long term. And so if you look at what we're doing, we're also recognizing the environment that we're in is tough. And so we're cutting costs. We're cutting hiring. We are being very prudent and deliberate on people that we hire. And so a number of areas in the company are not hiring at all," Apple CEO Tim Cook told CNBC in February.
Several other companies are looking to fill largely engineering-related positions. Thus, the firm is proceeding with caution and care.
Looking at the operating expense forecast from the previous quarter and what was projected for this quarter, Cook said they were able to come in half a billion dollars under target. Hence, the cost-cutting efforts.
Apple reported profits for the last December quarter that were around 5% lower than the same period in 2021, marking the company's first year-over-year sales decrease since 2019.
New Cost-Cutting Measures
Cook himself is taking a wage reduction as part of the changes. Apple said in January that he would get a 40% pay cut in 2023, to about $49 million. During Apple's annual meeting on Friday, Mar. 10, shareholders approved compensation packages for the company's executives.
Bloomberg added that among the measures Apple has taken to save expenses is a review by the human resources department of how frequently workers actually show up for work.
Current corporate policy, implemented with some controversy last year, mandates that workers spend at least three days per week in an Apple facility. Several employees are scared that the corporation may fire anyone who fails to show up to work at least three days each week now that attendance is being more closely monitored.
Fears have reached Apple's retail workers. Some of the staff said that management was becoming more strict about checking up on them and recording their hours worked.
Moreover, some part-time retail workers have complained that they are being pressured to leave their jobs by being forced to work longer hours and more days than they originally committed to.
