Apple Starts Savings, Limits Recruitment and Spending Next Year All

by -147 Views – Apple will reportedly follow in the footsteps of other tech companies to make savings. Apple is said to be starting to limit hiring and spending starting next year.

According to reports, this decision was taken to prepare the company for the potential decline in economic growth in 2023.

Internal sources cited Bloomberg said the decision would not affect all divisions of the company.

In other words, savings are only applied to a few divisions, for example for the division of research and development (R&D), resources and recruitment.

Meanwhile, in terms of recruitment, some divisions will not add teams or fill vacant positions next year.

Also read: Google reduces the number of new hires

Despite the decision, Apple is said to be still maintaining the company’s new product launch schedule for 2023, including: headset Augmented Reality/Virtual Reality.

Apple itself has not provided an official response to this report. However, since this news broke, the company’s shares have fallen 2 percent, as summarized KompasTekno from Apple Insiders, Tuesday (19/7/2022).

The decision to suspend recruitment and cut Apple’s operating costs occurred because Apple was trying to cope with the potential economic downturn.

According to an internal source, this strategy was adopted so that the company would exercise caution during such uncertain times.

Google until Meta freezes recruitment

Before Apple, a number of leading technology companies such as Google and Meta also decided to suspend hiring. Google CEO Sundar Pichai announced the decision to company staff.

The suspension of recruitment at Meta was announced by the Chief Product Officer of Meta and applies to several positions in certain divisions. Meta also terminated the contract with similar employee management provider partners outsourcing, and led to layoffs of hundreds of employees.

Microsoft also initially said it was delaying recruitment, although last week the company founded by Bill Gates ended up laying off about 1,000 employees.

Read also: Microsoft lays off about 1,000 employees

The wave of layoffs that hit the United States’ own technology companies according to Crunchbase has been happening since the beginning of 2022. However, since last June, the wave of layoffs has increased compared to the previous months.

Several technology companies that have laid off employees so far include Netflix, Twitter, Niantic, GameStop, Coinbase, OpenSea and Tesla.

The reasons behind the decision to suspend recruitment and layoffs are due to economic instability, rising interest rates in the US as well as rising US inflation to more than 9 percent.

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