There’s a reason why Apple is under less pressure than tech peers to slash jobs during the current slowdown: It hired more efficiently in the first place.
During the industry’s pandemic-fuelled hiring binge, Apple added fewer employees than other big tech firms. On top of that, the company generated far more revenue per new hire than its peers, according to data compiled by Bloomberg.
That more cautious approach is paying off now. Though Apple has frozen hiring in some areas and is keeping a lid on spending — especially outside research and development — it hasn’t yet resorted to the mass layoffs underway at Amazon.com, Alphabet’s Google, Meta Platforms and other tech giants.
“This signals a better quality of management at Apple compared to other technology companies that clearly read the signals during the pandemic the wrong way,” said Saxo Bank A/S’s Peter Garnry.
The company announced plans to shore up its human resources this week by hiring its first chief people officer. HR duties had been overseen by retail chief Deirdre O’Brien in a dual role.
Many tech companies admit that they hired too much during the pandemic, betting that lifestyle changes — including remote work, e-commerce spending and video-game habits — would bring a bigger windfall. Now they’re dealing with the aftermath. Zoom Technologies Inc., one of the biggest beneficiaries of Covid-19 lockdowns, just announced this week that it was cutting 15% of its jobs.
Apple, meanwhile, was more cautious. Its headcount increased just 20% from 2020 to 2022,
