Apple Cuts 700 Jobs: The Inside Story

In the tech sector’s turbulent season of layoffs in May 2023, many leading corporations, including Amazon, Meta, Google, Microsoft, and Intel, made headlines by significantly reducing their workforce. Amid this wave of job cuts, Apple remained a notable exception, with CEO Tim Cook stating in a CNBC interview that layoffs were considered a “last resort” for the company. However, a recent development reveals Apple has now taken this drastic step, confirming the termination of 700 positions.

The Path to Layoffs: Apple’s Conservative Hiring Strategy

During the global upheaval caused by the Covid-19 pandemic, tech giants aggressively expanded their workforce. Microsoft, for example, added approximately 58,000 employees between 2020 and 2022. Facebook saw its most substantial growth in employee numbers during 2020 and 2021. Alphabet (Google’s parent company) and Amazon also embarked on hiring sprees, with Amazon adding an astonishing 810,000 workers to its roster. Apple, by contrast, took a more measured approach, increasing its staff by 17,000 in its retail and corporate sectors during the same period. This restrained growth strategy allowed Apple to avoid the mass layoffs other tech firms faced, by maintaining a leaner workforce.

Cost-Cutting Measures Precede Layoffs

Despite avoiding large-scale layoffs, Apple employees began to feel the effects of budget tightening measures in early 2023. According to Bloomberg, the company delayed bonuses for corporate employees and implemented stricter approval processes for incurring additional expenses. Travel budgets were significantly reduced, necessitating approval from senior vice presidents for any travel-related spending.

Reasons Behind Apple’s Current Employee Reductions

Apple’s decision to lay off employees stems from discontinuing costly and unfruitful projects. Among these was the much-anticipated but secretive “Project Titan,” aimed at developing an Apple-branded car. In February 2024, Jeff Williams, Apple’s COO, and Kevin Lynch, the project head, announced the project’s cancellation in a brief meeting, impacting around 2,000 employees who were told they might face layoffs if not relocated within the company. Another discontinued initiative was the development of Micro LED displays for the Apple Watch, which encountered significant production hurdles, leading to further job terminations. In total, approximately 700 employees across various departments have been let go, marking a significant shift in Apple’s employment practices.

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