Unlike Google and Microsoft, Apple has so far avoided huge layoffs, but why

Apple seems to be avoiding layoffs despite concerns about the economy and significant layoffs at some major tech firms. During its earnings call for the most recent quarter on February 2, Apple will likely provide a somewhat clearer picture, but as of now, it seems the iPhone manufacturer has no plans to lay off employees, at least from a corporate standpoint. But the crucial query is still: Is Apple performing better than its competitors, and if so, how is it functioning in these hazy macroeconomic times? Let's look at it.

Also Read: Influencers on social media who don’t declare sponsored posts risk fines of up to Rs. 50 lakh

Big Tech Giants Story so far

Twitter

Twitter was one of the first significant digital corporations to lay off workers in bulk to reduce costs in late October 2022. Following his formal takeover, Twitter's new owner, Elon Musk, made the decision to terminate half of the company's staff.

Meta

After suffering significant losses in several of its divisions, Meta stated that it will be firing nearly 10,000 workers. Mark Zuckerberg's metaverse initiative is being managed by Reality Labs, a part of Meta, but it isn't performing well either.

Amazon

Thousands of Amazon employees will also be let go in a big layoff, which the corporation blamed on the weak global economy. The cutbacks severely impacted its devices section, which is in charge of the Echo speakers. Amazon announced earlier this month that it had laid off around 18,000 employees.

Google

Amazon also made the announcement that it will be laying off thousands of workers in a mass layoff. The cutbacks severely impacted its devices section, which is in charge of the Echo speakers. Amazon announced earlier this month that it had laid off around 18,000 employees.

In a similar vein, a number of prominent American tech giants, including Salesforce, Snap, HP, Adobe, and others, have laid off employees to reduce costs.

Does Apple have a recession proof business?

Last Mass Lay-offs in Apple took place 1997 when Steve Jobs returned

Apple is currently the only significant tech company that has avoided huge employee layoffs. According to AppleInsider, the business has let go of a few of its retail leaders, but the headcount does not appear to be more than 100. When Steve Jobs reclaimed his position as CEO in 1997, there were a total of 4100 layoffs at Apple.

Current layoffs stems from Companies over hiring during pandemic

The overhiring that took place during the epidemic is one of the main causes of the present wave of mass layoffs at large corporations. Many economies implemented stringent lockdowns during the height of the COVID-19 outbreak, which caused people to spend more time online. Tech corporations overhired personnel to increase operations because they were positive about the trend.

Microsoft had 221,000 full-time employees in June 2022, up 40,000 over the same time in 2021, according to SEC filings (via Moneycontrol). Microsoft increased employment by 18,000, or 11%, the year prior. Similar to this, Amazon increased employment by 38% from 2020 to 310,000 jobs last year. The two most recent years have seen significant hiring at Google and Meta as well. In 2021, they plan to recruit over 34,000 new staff (13,000 for Meta and 21,000 for Google).

Apple hired carefully between 2020 and 2022

However, between 2020 and 2022, Apple made careful hiring decisions. Apple had 164,000 employees as of September 2022, a 6.5% rise over the same time in 2021. Apple barely employed 7,000 people between 2020 and 2021. This might be because Apple traditionally prioritises hardware rather than software like Google does, and since selling iPhones, Macs, and iPads accounts for the majority of Apple's earnings. While Apple may continue to run with the same staff while growing the manufacturing of its hardware, an increase in the demand for services often results in an increase in headcount.

As stated, more information about Apple's performance will become available on February 1. It won't take long for the corporate side to hear about Apple firing retailers if the report is true.

Also Read: Tax saving fixed deposit – Interest rates offered by key banks and investment details

Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER