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It is reported that in order to avoid large-scale layoffs in the unstable economic situation, Apple has taken a series of measures to reduce costs and increase efficiency since last summer, including delaying the payment of bonuses, postponing some projects, controlling budget and recruitment, and cutting contract workers and travel expenses.
However, Apple is also facing unprecedented challenges, including a global supply chain crisis, chip shortages, rising interest rates, currency fluctuations, international conflicts, and the pandemic. These factors contributed to a 5% decline in Apple's sales last quarter and is expected to continue to decline this quarter as well.
At the same time, Apple's competitors are also taking various aggressive measures to deal with the downturn, such as Meta's heavy investment in the metaverse, Amazon, Microsoft and Google's entry into emerging markets. These companies are hiring heavily during the pandemic, but have laid off more than 50,000 jobs in recent months.
Apple, by contrast, seems more reluctant to make large-scale layoffs because they could hurt morale and public perception at Apple and trigger ripple effects in other industries and economies.
Therefore, Apple has opted for a gentler but effective way to reduce costs and improve efficiency. According to reports, here are the top twelve steps Apple has taken so far to avoid layoffs:
1. Postpone the payment of bonuses to certain teams and change the previous two payments a year to a one-time payment.
2. Some projects have been postponed until next year, including new home devices such as the HomePod with screens.
3. Controlled the budgets of several teams, while more projects required SVP approval to move forward.
4. Completely suspended the hiring of some teams and severely restricted the recruitment of other teams.
5. When some people choose to leave, keep those open positions instead of hiring them immediately.
6. In some cases, restrict staff transfers to other departments or retail stores, as this process is often accompanied by increased costs.
7. Laid off many contractors (part-time employees) and quietly cut the number of contractors on engineering teams and other teams.
8. Significantly reduced travel budgets, with employees now requiring approval from senior management. For some departments, travel will cease altogether for the foreseeable future, unless there are critical business reasons.
9. Strict check of attendance, Apple employees now usually go to work on Tuesdays, Wednesdays and Thursdays. Some employees believe that this is a precursor to the company's firing of non-compliant employees.
10. In the retail sector, keep an eye on employee attendance and working hours. Many employees worry that they may be laid off if they do not work a certain amount of time. Other employees believe that Apple has taken tougher measures to make employees quit automatically, thus saving the company money.
11. In some cases, shifts will not be changed if sick leave or other reasons are absent. The company also eliminated "special sick leave" and required employees to use normal sick leave or they would not be paid.
12. Employees are not always hired to replace them when they leave. In addition, the number of people leaving for various reasons seems to be increasing.
Although these measures make ordinary Apple employees feel uneasy and stressed, they also reflect Apple's adherence to its core values and sense of mission. With these measures, Apple hopes to maintain its competitiveness and innovation during the downturn and prepare for better development in the future.
It is reported that Apple CEO Tim Cook has said that "layoffs will be a last resort." He added, "We believe we can get through this difficult time and emerge stronger." ”
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