Apple is the only tech giant that still hasn’t announced layoffs
√ Many of the biggest technology companies are laying off staff as fears of a recession rises.
√ But the job cuts come after a few years of voracious expansion.
√ Apple is an exception on both fronts, so far.
Many of the biggest technology companies are laying off staff as fears of a recession rises. But the job cuts come after a few years of rapid expansion.
On Wednesday, $Microsoft(MSFT.US$ announced it will eliminate 10,000 employees, reducing its workforce by 5%, and Amazon began conducting layoffs that will eventually slash 18,000 jobs.
Microsoft and $Amazon(AMZN.US$ are joining tech industry peers including Alphabet and Meta which have also cut staff in recent months.
But an underappreciated factor is how rapidly tech companies ramped up hiring over the last two years.
In 2020, widespread Covid lockdowns made internet applications more important to people, supercharging business for many tech companies. As sales and profit continued to rise in 2021, they continued to add huge numbers of employees in the hopes that the success they were seeing would become a new baseline. It didn’t work out that way. Growth is slowing, and companies are now having to readjust.
Apple is a major exception: It did not appreciably increase its rate of hiring over the last two years, and also has not announced any layoffs.
A review of SEC filings shows how rapidly the other biggest tech companies grew during the pandemic.
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