Apple reportedly has recently announced its first significant layoffs since pandemi. The job cuts are said to affect about 700 employees at its special projects group. However, the scale of these cuts is significantly smaller than the tens of thousands of jobs slashed by rival tech giants Google, Facebook, Amazon and Microsoft in the last 14-15 months.
The employees let go at Apple were primarily from two discontinued projects—the self-driving electric car initiative dubbed Project Titan and a unit developing MicroLED displays for future watch models. About 2,000 employees worked on Project Titan, some of whom were moved to other projects, and they were also told that they would be let go if they couldn’t fit into other projects.
Why job cuts at Apple are fraction of that announced at other tech giants
Apple’s ability to avoid deep job cuts can be attributed to two key factors: One, its conservative approach to hiring during the pandemic-fueled boom and; two, its focused investments in growth opportunities.
According to Bloomberg’s data, Apple hired fewer employees than other major tech companies during the industry’s hiring spree between 2020 and 2022. The company’s headcount increased by just 20%, compared to a 60% gain at Alphabet and a near-doubling at Amazon. Apple’s revenue per new hire was significantly higher than other tech giants.
“Apple hired much more judiciously during the pandemic compared to peers who overestimated how permanently COVID would accelerate digital trends,” said Wedbush analyst Dan Ives, as quoted in Bloomberg’s report. “This allowed them to avoid bloating and enter the downturn with a relatively lean workforce.”
Furthermore, Apple’s focused investments in growth opportunities have contributed to its resilience during the slowdown. As noted in Bloomberg’s report, Credit Suisse Group AG analyst Shannon Cross stated, “Apple is frugal by nature. It comes down to the management’s stewardship of shareholder dollars and a tight focus on what growth opportunities to invest in.”
The company’s cautious approach paid off, as it generated some of the industry’s highest sales per square foot, indicating that its efficiency extends beyond hiring policies. This contrasts sharply with many tech companies that admit to having hired too much during the pandemic, betting on lasting lifestyle changes such as remote work, e-commerce spending, and video-game habits.
As a result of their overhiring, Amazon, Alphabet, and Meta have announced multiple rounds of layoffs, affecting tens and thousands of employees combined at different divisions from engineering to marketing. Meanwhile, job cuts at Apple at confined to much smaller number compared to these companies, as it winded down its special projects.
The employees let go at Apple were primarily from two discontinued projects—the self-driving electric car initiative dubbed Project Titan and a unit developing MicroLED displays for future watch models. About 2,000 employees worked on Project Titan, some of whom were moved to other projects, and they were also told that they would be let go if they couldn’t fit into other projects.
Why job cuts at Apple are fraction of that announced at other tech giants
Apple’s ability to avoid deep job cuts can be attributed to two key factors: One, its conservative approach to hiring during the pandemic-fueled boom and; two, its focused investments in growth opportunities.
According to Bloomberg’s data, Apple hired fewer employees than other major tech companies during the industry’s hiring spree between 2020 and 2022. The company’s headcount increased by just 20%, compared to a 60% gain at Alphabet and a near-doubling at Amazon. Apple’s revenue per new hire was significantly higher than other tech giants.
“Apple hired much more judiciously during the pandemic compared to peers who overestimated how permanently COVID would accelerate digital trends,” said Wedbush analyst Dan Ives, as quoted in Bloomberg’s report. “This allowed them to avoid bloating and enter the downturn with a relatively lean workforce.”
Furthermore, Apple’s focused investments in growth opportunities have contributed to its resilience during the slowdown. As noted in Bloomberg’s report, Credit Suisse Group AG analyst Shannon Cross stated, “Apple is frugal by nature. It comes down to the management’s stewardship of shareholder dollars and a tight focus on what growth opportunities to invest in.”
The company’s cautious approach paid off, as it generated some of the industry’s highest sales per square foot, indicating that its efficiency extends beyond hiring policies. This contrasts sharply with many tech companies that admit to having hired too much during the pandemic, betting on lasting lifestyle changes such as remote work, e-commerce spending, and video-game habits.
As a result of their overhiring, Amazon, Alphabet, and Meta have announced multiple rounds of layoffs, affecting tens and thousands of employees combined at different divisions from engineering to marketing. Meanwhile, job cuts at Apple at confined to much smaller number compared to these companies, as it winded down its special projects.