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Apple avoids mass layoffs amid continued slowdown due to efficient hiring during pandemic: Details

There’s a reason Apple is under less pressure than its tech counterparts to cut jobs during the current downturn: It’s been hiring more efficiently in the first place.

During the hiring binge in the industry caused by the pandemic, Apple added fewer employees than other big tech firms. On top of that, according to data compiled by Bloomberg, the company generated much more revenue per new hire than its competitors. This more cautious approach is paying off now. While Apple has frozen hiring in some areas and is keeping costs under control – especially outside of research and development – it has yet to resort to the massive layoffs that are currently taking place. Amazon.comAlphabet Google, Meta and other tech giants.

“This is indicative of a higher quality of governance at Apple compared to other tech companies that clearly misunderstand the signals during the pandemic,” said Peter Garnry of Saxo Bank A/S.

The company this week announced plans to bolster its human resources by hiring its first HR director. Retail Director Deirdre O’Brien served as Human Resources in a dual role.

Many tech companies admit they have been hiring too much during the pandemic, betting that lifestyle changes, including remote work, e-commerce spending and video game habits, will bring big windfall profits. Now they are dealing with the consequences. Zoom Technologies Inc., one of the biggest beneficiaries of the Covid-19 lockdown, just announced this week that it is cutting 15 percent of its jobs.

Meanwhile, Apple has been more cautious. Its membership increased by just 20 percent from 2020 to 2022, compared to a 60 percent increase at Alphabet and a nearly doubling at Amazon. The two companies announced a playoff with approximately 30,000 attendees.

Apple has also generated far more revenue per additional employee during the pandemic years than it did in the previous three years. This is in stark contrast to most of its technological counterparts. However, headcount cannot fully explain Apple’s advantage over the competition. The company also generates some of the highest sales per square foot, an indication that its performance goes beyond hiring policy.

“Apple is inherently lean,” said Shannon Cross, an analyst at Credit Suisse Group AG. “It comes down to management managing shareholder dollars and paying close attention to which growth opportunities to invest in.”

© 2022 Bloomberg LP

Apple released the iPad Pro (2022) and iPad (2022) this week along with the new Apple TV. We discuss the company’s latest products along with our iPhone 14 Pro review on Orbital, a Gadgets 360 podcast. Orbital is available on Spotify, Gaana, GioSaavn, Google Podcasts, Apple Podcasts, Amazonian music and wherever you get your podcasts.

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