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Apple has managed to avoid layoffs during the pandemic, unlike many other tech companies that have had to cut thousands of jobs to reign in spending. A recent report from Bloomberg highlights what Apple did differently to weather the challenging macro environment.
Apple only increased its staff by 20% compared to companies like Amazon and Salesforce which roughly doubled their workforce. At the end of 2022, Apple did slow down on hiring, but it has still managed to avoid layoffs.
Apple has more than doubled its revenue per additional headcount over the last six years. The company had $1.17 million in revenue per additional headcount from 2017-2019, which was comparable to Alphabet and Microsoft.
However, from 2020-2022, that number more than doubled to $2.51 million while being more cautious with hiring and increasing profit.
Apple’s efficiency and profitability across all areas of its business is a critical part of the increase in revenue per additional headcount.
The company’s robust underlying business and efficiency, combined with a much lower increase in hiring, make the above metric stand out when compared to other tech giants.
Credit Suisse Group AG analyst Shannon Cross described Apple’s success as “the management’s stewardship of shareholder dollars and a tight focus on what growth opportunities to invest in.”
Apple may have had a miss for its holiday earnings with lower iPhone sales than expected, but with $117 billion in revenue and almost $30 billion in profit in just three months, the company’s performance is impressive by any standard.
