Apple plans to slow hiring and reduce cost growth next year in several of its divisions. According to insiders, this is how the tech giant wants to cope with a potential economic downturn, reports Bloomberg.
Not all teams will be affected by the changes, and Apple is still planning an aggressive launch schedule for new products in 2023. Including a mixed reality headset – the first new type of product since 2015 – should be released next year.
Apple annually allocates a budget for each of its main divisions for research, development, resources and hiring. For 2023, the budget for some of them turned out to be smaller than expected. Some didn’t get a chance to grow the team, even though they typically hired 5% to 10% of the people during the year. Also, the company does not plan to look for employees to replace those who are being laid off in some teams.
The manufacturer has not yet officially commented on this information. Although caution is not a general company policy, it does not hurt in uncertain times. Moreover, this approach allowed Apple to exceed the forecasts of Wall Street and withstand previous economic shocks better than others.
Apple shares are down 17% this year. Other tech giants are also going through tough times. Alphabet (owned by Google), Amazon, Meta Platforms, Snap and others have been taking steps to conserve budgets and slow hiring in recent weeks. Microsoft, Tesla and Meta even cut jobs.
We remind that the technology industry has faced obstacles in production due to the shortage of chips caused by the Covid-19 pandemic. Disruptions in semiconductor supply chains were caused by lockdowns in China and other Asian countries, the largest chip makers. According to the words of the general director of Intel, the global chip crisis may last until 2024.