When digital behemoths like Amazon, Meta, Microsoft, Google, and others announced significant layoffs, many within the industry waited for Apple to fall into line. On the other hand, Apple has not laid off any employees and has no intentions to do so anytime in the foreseeable future. Apple CEO Tim Cook has claimed that layoffs are the final alternative and that he will find alternative methods to cut expenses rather than laying off employees. He has not completely ruled out the potential of layoffs, but Apple has successfully avoided them for the time being.
Google, like Amazon, Meta, Microsoft, and Twitter, recently laid off many people. Apple has now become the only big technology business that has yet to perform layoffs. There are many reasons why the economic downturn and recession have not yet affected Apple.
Mentioned below are some of the significant factors:
- Apple recruited fewer people than its competitors.
Overhiring was a key factor in the current tech layoffs. This is something Apple did not do throughout the covid outbreak crisis. Compared to other technology businesses, Apple has grown its staff more slowly. According to a Forbes article, Apple has maintained the same hiring pace since 2016.
According to studies published, Apple recruited less than 7,000 people in 2020. By September 2022, the corporation had hired 164,000 full-time employees in its corporate and commercial divisions.
- Apple, unlike other large technology businesses, does not spend a lot of money on giveaways
Unlike other large IT businesses, Apple does not give its employees free meals (lunch and dinner), which saves the corporation a considerable amount of money. Instead of firing them, Apple, as per Tom Forte, principal research associate at investment firm D.A. Davidson & Co, may merely not substitute those who leave or retire. Apple may also adjust additional advantages or perks it provides, but these changes may be minor. Unlike several other large technological firms, such as Google or Meta, Apple does not offer free lunches to its employees.
- Chief Executive Officer Tim Cook has voluntarily reduced his salary:
Apple CEO Tim Cook deliberately reduced his salary. According to sources, Cook believes his income is far too excessive. He has taken a wage cut and will get a nearly 50% decrease in his benefits arrangement at the firm. Apple announced in an SEC statement that Tim Cook’s new remuneration would be US Dollar 49 million in aggregate coming ahead. This comprises a US Dollar 3 million basic pay, a US Dollar 6 million incentive, and a US Dollar 40 million market capitalisation. Furthermore, Cook’s share of stock units, which is linked to Apple’s success, will increase from 50% to 75%.
Cook received a pay deal of US Dollar 99.4 million in 2022. This comprised the same US Dollar 3 million basic income and about US Dollar 83 million in incentive and stock options. Tim Cook’s overall remuneration package in 2021 is expected to be about US $ 98.7 million. Cook received a wage decrease despite receiving stockholder approval. His compensation was approved by approximately 64% of owners.
