Apple analyst Mark Gurman explained why Apple did not make mass layoffs. Gurman also explained what steps Apple has taken in this process.
Technology companies have not been going through a very good process lately. global economic uncertainties The falling incomes caused by the leading names of the technology world to make mass layoffs. However, while all this is going on, there is a brand that is trying to fire even one person. that brand apple.
Apple CEO Tim Cookmade a statement a few months ago that the mass dismissal method would be the last option. had said. In other words, Apple would go to reduce costs instead of mass layoffs. So how will the company do this? Experienced Apple analyst Mark Gurmanexplained in the latest Power On bulletin why Apple did not make the layoffs and what steps it took in the process.
“Apple makes too much money for mass layoffs”
According to the statement made by Mark Gurman, the decision of a brand like Apple to be laid off. justify it’s not easy. Because Gurman states that the company earned $30 billion in the quarter, which is more than any other technology company. In addition, the company’s stock has increased by around 20 percent since the first day of 2023. Gurman said all this because of comments that would be made if Apple were to go out of business. uneasy says it is.
According to Gurman, senior executives working within Apple they are very important. And yet, a mass layoff is either because Apple employees made huge mistakes, or because global economic indicators are worse than people predicted. much worse would lead to interpretation. According to the analyst, Apple could not make mass layoffs precisely because of these.
So what did Apple do to cut costs?
Mark Gurman explains what Apple is doing to avoid mass layoffs:
- Bonus payments postponed.
- for less important products like the HomePod new models postponed.
- Some split into teams budgets were cut.
- Recruitments in some units stopped.
- New purchases for vacant positions not done.
- additional costs initiatives were avoided.
- non-full-time employees and subcontractor companies parted ways.
- Travel budgets throttled. In some units, travel will now be made only if it is vital.
- working in the office compulsory has been made.
- Apple sales reps have increased their load and employees they are afraid of being fired. It has also been reduced from normal leave days due to COVID-19.
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According to Mark Gurman, Apple aims to stand at a different point from its competitors by applying these methods instead of mass layoffs. succeeded. However, talking about the uncertainty of the future, Gurman said that the decision of mass dismissal is always possible states that it is.