No Mass Layoffs at Apple Doe to Efficient Hiring over the Last Few Years
Amid the current economic slowdown, Apple doesn’t need to cut jobs because its initial hiring process was more efficient that of its tech peers’.
The pandemic fueled a huge hiring boost in the industry, but Apple did not hire as many employees as other tech giants. Moreover, revenue per hire has been higher at Apple than at other companies.
The cautious personnel policy is making sense now, when the company is no longer hiring and restricts spending, particularly outside R&D, which allows it to stay away from mass layoffs, like the ones at Meta, Alphabet, Amazon, etc. Many tech companies agree that they hired too many people during the Covid 19 pandemic, expecting the lifestyle changes to bring in more revenue. Even the seemingly greatest beneficiaries of the pandemic lockdowns, Zoom Technologies, Inc. intends to cut down 15% of its personnel.
Apple, with its careful approach, only increased its personnel by 20% over the last 3 years, while the headcount at Amazon practically doubled, and at Alphabet – grew 60%. Currently, these two firms are about to cut a total of 30,000 jobs.
Besides a cautious approach to hiring, Apple is also characterized by generation of higher revenue per square foot. The company is “frugal by nature,” according to Shannon Cross, Credit Suisse Group AG analyst.