Apple’s Remarkable Hiring At A Lower Clip. CEO Tim Cook Has Taken A Voluntary 50% Pay.

At this time when tech Giants like Microsoft, Meta and Google have been announcing mass layoffs, Apple is the only company that has not resorted to mass layoffs as done by the other tech giants. Apple has also opened its first two retail stores and launched savings accounts in India.

Tim Cook, the CEO of the Tech Giant, mentioned last week that Apple is not planning any mass layoffs while discussing the earnings of the company. His statement is a huge relief for the employees getting anxious during this time of layoffs.

To save the costs, Apple CEO Tim Cook has taken a voluntary 50% pay. According to the reports, he said that they are not thinking and planning about the mass layoffs during this period and view this as a last resort.  Apple is reducing costs and has slowed down the rate of hiring.

Tim Cook also says that although they are continuing to hire they are hiring at a lower clip than before. He also mentioned finding more ways to do all the right things in this challenging time.

In response to macroeconomic conditions, it’s better not to lay off the employees now. Apple had slowed its hiring during the COVID-19 pandemic.

Despite all these, Apple still remains extremely profitable. According to the March quarter earnings report, Apple has a $24 billion net income on $95 billion in total revenue.

Other Tech Giants on Mass Layoffs and Their CEO’s Statements

In recent months mass layoffs announcements have been justified by tech giants’ CEOs in their ways. Sundar Pichai, CEO of Alphabet, said they hired for a different economic reality. Satya Nadella, CEO of Microsoft, said they focussed on their short-term and long-term opportunities.

Jack Dorsey, Former CEO of Twitter, admitted regretting growing the company too quickly. Last year, Jim Farley, American automaker and CEO of Ford said they have too many people. Mark Zuckerberg said that Meta was taking steps to become a leaner and more efficient company.

Layoff and its concept
Layoff is a reduction in the workforce. Layoff is an involuntary separation from work with no fault of employees. It is often initiated to cut costs by the employer for economic reasons.

Layoff is different from firing for a cause. Example- In firing, an employee can have unacceptable workplace behaviour. When an employee cannot afford to keep the labour, Layoffs happen.

Types of layoffs are Temporary, Permanent, Voluntary (resignation or retirement) and Mass layoff.

Some Companies with mass Layoffs in 2023

Twitter layoffs: The mass layoff of Twitter affected many departments like the content moderation teams, advertising departments, sales, and engineering & development divisions.

It laid off almost 50% of its workforce. It is the largest mass layoff of 2022 by a tech company. In the second round, it laid off roughly 10% of its workforce in February 2023.

Meta layoffs: Meta also had two layoff rounds and laid off 13% of the workforce. This layoff was Meta’s first mass layoff in its 18-year history.

Shopify layoffs: In May 2023, Shopify laid off 20% of the workforce due to decreasing demand.

Amazon layoffs: Amazon planned to cut 18,000 worldwide centred around corporate and technology jobs. These layoffs are just the beginning of Amazon’s overall plan to consolidate certain teams.

Spotify layoffs: Daniel Ek, CEO of Spotify, announced changes to high-level management and cited the need for speed and efficiency as some driving forces behind these “organisational changes.”6% of the workforce was laid off (January 2023)

Disney layoffs: 3% laid off (February 2023). This layoff will largely affect ESPN and the entertainment division.

Zoom layoffs: 15% were laid off in Zoom. The announcement was made through e-mail. Eric Yuan, the  CEO of Zoom, announced his salary reduction by 98% this year, while other executives will see a 20% cut.

Every department will be impacted by this layoff. Laid-off employees will receive up to 16 weeks’ salary and healthcare coverage as severance.

Proofread, Edited & Published By Naveenika Chauhan