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According to a recent report from Bloomberg, Apple has decided to extend its hiring freeze to cover more roles and delay bonuses for some employees as the company faces a decline in revenue. The hiring pause, which began last year, initially only affected most jobs outside of research and development.
However, the freeze has now been extended to encompass additional positions, and Apple is leaving vacancies open as employees leave the company to reduce the workforce.
This cost-cutting measure comes as Apple has slowed down on hiring and spending, with the hiring moratorium not applying to teams working on future devices and long-term initiatives. While Apple has not announced any layoffs, the company is focused on reducing its workforce through this hiring freeze.
In addition to slowing hiring, Apple is also planning to reduce the frequency of bonuses for some of its corporate workforce. Apple typically provides bonuses and promotions once or twice a year, depending on the division, with extra money paid out in April and October. However, the company is shifting entirely to a once-per-year bonus schedule, with bonus payments to be made in October for all teams.
Despite these cost-saving measures, Apple CEO Tim Cook is also being paid less this year, receiving $49 million in salary, bonuses, and stock awards, down approximately 50 percent from the $99 million he was paid in 2022.
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Apple is not alone in making cost-cutting measures to mitigate the effects of falling revenue. Twitter has seen thousands of employees cut following a takeover by Elon Musk, and just this week, Facebook announced plans to lay off approximately 10,000 employees. Microsoft also cut its AI ethics team this month following several prior layoff events, while Google parent company Alphabet laid off 12,000 employees in January.
Apple’s first fiscal quarter of 2023 saw a five percent drop in revenue year-over-year. The company is expecting a notable decline in Mac and iPad revenue in the second fiscal quarter, which will lead to similar sales numbers.