Like Google, Meta, and Microsoft, Apple is taking steps to reduce its operating expenses in the face of declining demand brought on by recessionary anxieties. Bloomberg reported on Tuesday that the iPhone manufacturer is deferring bonuses for several corporate divisions and stepping up a cost-cutting initiative. A percentage of Apple’s corporate workers will no longer receive bonuses as frequently as before, the report said. The corporation is also restricting hiring for new employment and leaving vacant positions when workers leave.
Depending on the division, the computer giant with headquarters in Cupertino used to distribute bonuses and promotions once or twice a year. Bonuses were given to employees in some divisions twice a year, in April and October. But with the new strategy,
According to the source, there won’t be any incentives or promotions for the organisation in the upcoming month, and all divisions will switch to an annual plan with payments made only in October.
The majority of Apple’s divisions, including software engineering and services, had already switched to a once-per-year timetable for bonuses and promotions, but employees in operations, corporate retail, and other areas were still on the previous biannual plan, the article said.
Apple is the most recent company to join the group of companies that have reduced expenses as a result of a number of post-Covid circumstances that have hurt demand.
In order to enhance its “financial performance in a tough climate,” Meta only recently announced more job layoffs. CEO Mark Zuckerberg stated, “We anticipate to cut our team size by about 10,000 individuals and to close about 5,000 additional open roles that we haven’t yet hired. The tech company just let rid of 11,000 employees in addition to this.
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