Apple to Cut Back on New Hires Following Disappointing Holiday iPhone Sales

Apple plans to cut back on hiring for some divisions of the company after disappointing iPhone sales during the holiday season, reports Bloomberg.

Apple CEO Tim Cook shared the news with employees at an all-hands meeting earlier this month. According to sources in attendance, Cook was asked if Apple would implement a hiring freeze, but he said that he didn't believe that was an ideal solution. Instead, select divisions will see reduced hirings.

iphone xs vs xr
Cook at the time said Apple had not yet determined which divisions would cut back on hiring, but groups like the AI team will continue to add employees. Cook also told employees that a division's importance to the future of Apple is not measured through hiring rates.

It's not clear how extensive the hiring reduction will be, but new Apple offices planned in Austin, Texas and Los Angeles, California will not be impacted. In 2018, Apple added 9,000 new employees, and in 2017, Apple added 7,000 new employees. According to a recent SEC filing, Apple employs a total of 132,000 people, including its retail locations.

applehiring

Apple's workforce over the past 10 years, chart via Bloomberg

Apple held the all-hands meeting shortly after announcing that it was lowering revenue guidance for the first fiscal quarter of 2019 due to fewer ‌iPhone‌ sales than anticipated.

Apple is expecting revenue of $84 billion for Q1 2019, down from a November estimate of $89 to $93 billion and a $4.3 billion drop from the year-ago quarter.

Cook provided multiple reasons for the drop, including ‌iPhone‌ XS, XS Max and XR launch timing, a strong U.S. dollar, supply constraints, economic weakness and trade tensions in China, and weak ‌iPhone‌ upgrade numbers due to fewer carrier subsidies and low-priced battery replacements.

According to Bloomberg, internally, Apple executives have positioned declining ‌iPhone‌ sales as an opportunity for innovation, and Apple is also planning to bolster its growing services category with third-party integrations and an upcoming streaming TV service.

Following Cook's talk with employees, some Apple senior vice presidents held separate meetings with vice presidents, senior directors and other managers in their groups to emphasize that the iPhone sales slowdown is an opportunity for new innovation, according to one of the people.

In addition to fewer new hires in some divisions, Apple has also cut iPhone XR and XS production by 10 percent due to flagging ‌iPhone‌ sales, and it is encouraging more upgrades by dropping prices in China and offering increased trade-in values in the U.S. and other countries.

Top Rated Comments

levitynyc Avatar
44 months ago
Billions upon billions of untaxed cash sitting in Ireland, but let's have a hiring freeze to appease investors.

How about just cutting the prices of Macs and iPhone?
Score: 93 Votes (Like | Disagree)
bladerunner2000 Avatar
44 months ago
Make a good phone and this won't be a problem... you know; no notch, put in a headphone jack, use the standard USB-C port... things like that.
Score: 61 Votes (Like | Disagree)
tekboi Avatar
44 months ago
The company has over a Trillion Dollars with obscene amount of money overseas that can't be taxed, but they need to "cut back"?



Greed is what is what is destroying popular opinion of the the company and driving down sales.
Score: 55 Votes (Like | Disagree)
Relentless Power Avatar
44 months ago
Apple needs to focus on in-store services, revamping their pricing structure and understanding the current market when it comes to the iPhone price points and what the consumer wants to upgrade to with a respectable price tag for a smart phone. Hopefully in 2019, we do see some changes in that area.
Score: 45 Votes (Like | Disagree)
Freida Avatar
44 months ago
Reduce prices to more reasonable level. Right now you are losing customers because you pushed it too far. Simple as that!
Score: 43 Votes (Like | Disagree)
ArtOfWarfare Avatar
44 months ago
... what have all of Apple's additions over the last several years been doing, exactly? Certainly doesn't seem to be anything worthwhile given we haven't seen much in the way of new products worth buying.

I agree with Cook that a hiring freeze makes no sense (they have plenty of money to hire the best people - cash is not at all a concern for them), but it seems to me that something is making Apple bloated and slow. They really need to trim the fat, and starting with Cook seems like a good choice.
Score: 31 Votes (Like | Disagree)

Popular Stories

iPhone 13 Always On Feature

iPhone 14 Pro Screen Refresh Rate Upgrade Could Allow for Always-On Display

Tuesday May 24, 2022 7:23 am PDT by
Last year's iPhone 13 Pro models were the first of Apple's smartphones to come with 120Hz ProMotion displays, and while the two iPhone 14 Pro models will continue to feature the technology, their screens could well boast expanded refresh rate variability this time round. To bring ProMotion displays to the ‌iPhone 13 Pro models‌, Apple adopted LTPO panel technology with variable refresh...
iPhone 14 Pro Purple Front and Back MacRumors Exclusive

iPhone 14 Pro Renders Highlight Multiple Design Changes

Wednesday May 25, 2022 8:56 am PDT by
Leaker Jon Prosser today shared ostensibly accurate renders of the iPhone 14 Pro, providing the most accurate look yet at what the device could look like when it launches later this year. In the latest video on YouTube channel Front Page Tech, Prosser revealed renders of the iPhone 14 Pro made by Apple concept graphic designer Ian Zelbo, highlighting a range of specific design changes...
iPhone 14 Purple Lineup Feature

Will the iPhone 14 Be a Disappointment?

Saturday May 21, 2022 9:00 am PDT by
With around four months to go before Apple is expected to unveil the iPhone 14 lineup, the overwhelming majority of rumors related to the new devices so far have focused on the iPhone 14 Pro, rather than the standard iPhone 14 – leading to questions about how different the iPhone 14 will actually be from its predecessor, the iPhone 13. The iPhone 14 Pro and iPhone 14 Pro Max are expected...
iPhone 13 Face ID

'High-End' iPhone 14 Front-Facing Camera to Cost Apple Three Times More

Monday May 23, 2022 7:05 am PDT by
The iPhone 14 will feature a more expensive "high-end" front-facing camera with autofocus, partly made in South Korea for the first time, ET News reports. Apple reportedly ousted a Chinese candidate to choose LG Innotek, a South Korean company, to supply the iPhone 14's front-facing camera alongside Japan's Sharp. The company is said to have originally planned to switch to LG for the iPhone...
apple wwdc 2022

Apple Shares WWDC 2022 Schedule, Keynote to Take Place June 6 at 10:00 a.m PT

Tuesday May 24, 2022 9:06 am PDT by
Apple today confirmed that the keynote event for the Worldwide Developers Conference will begin at 10:00 a.m. Pacific Time on June 6, the first day of WWDC. The keynote will be an online-only event, though a select number of developers have been invited to the Apple Park campus for a viewing event. In addition to confirming the keynote date and time, Apple has shared the full WWDC 2022...
2022 Apple Watch Pride Edition Bands

Apple Announces 2022 Pride Edition Watch Bands and Watch Face

Tuesday May 24, 2022 6:24 am PDT by
Apple today announced new Pride bands for the Apple Watch, with new Pride Edition Sport Loop and Pride Edition Nike Sport Loop options available. The new Pride Edition bands are available to order today for $49 on Apple.com and in the Apple Store app, and will be available at Apple Store locations starting May 26. The Pride Edition Nike Sport Loop is also coming soon to Nike.com. This...