Apple Expands Hiring Freeze, Delays Bonuses for Some Employees
Amid falling revenue, Apple has decided to expand its hiring freeze to encompass additional roles, according to a new report from Bloomberg. The company also plans to delay bonuses for some of its employees.
Apple late last year paused hiring for most jobs outside of research and development to cut down on costs, after slowing down on hiring and spending last July. At the time, the hiring moratorium did not apply to teams working on future devices and long-term Apple initiatives, but the freeze is now applicable for more jobs. Apple is leaving positions open as employees depart the company as a way to cut down on the workforce.
In addition to slowing hiring, Apple is planning to reduce the frequency of bonuses for some of its corporate workforce. Apple normally provides bonuses and promotions once or twice per year depending on division, with the extra money paid out in April and October, but the company is shifting entirely to a once-per-year bonus schedule. Bonus payments will be provided in October for all teams, and employees are still set to receive their full bonuses.
Apple CEO Tim Cook is also being paid less this year, and he is set to receive $49 million in salary, bonuses, and stock awards, down approximately 50 percent from the $99 million he was paid in 2022.
Unlike many tech companies, Apple has not announced layoffs, focusing instead on cutting down on hiring. 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 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 in the first fiscal quarter of 2023 saw a five percent drop in revenue year-over-year, and for the second fiscal quarter, the company is expecting a notable decline in Mac and iPad revenue, which will lead to similar sales numbers.