What’s Behind Apple’s “Secret Layoff” Plan?
Apple has started a secret "layoff" plan. According to the New York Post: despite that Apple $Apple(AAPL.US$ has avoided large-scale layoffs like many big techs, it was also quietly cutting costs. This part includes reducing the number of contract workers. Insiders say that Apple is now directly firing the contract workers without waiting for the contract to expire. Some of the contract workers said they felt cheated by the Apple management.
Stating that “they [Apple management] even told us a few weeks ago that our jobs were safe, ” buthen got laid off after weeks. CEO Cook once said that layoffs are the company's last resort, but when a reporter asked about contract workers, Apple's staff said that in the eyes of senior management, laying off contract workers is not considered layoffs, but only cost cutting. The company can also save a lot of money on severance pay.
Apple did not disclose the size of the contract workers, but some estimates believe that it is more than a few thousand people. After all, there are at least 36 different temporary service companies to help Apple manage project preparation activities, and some even assisted developing Apple Maps.
The reason why Apple can avoid laying off employees is because Apple has not recruited so many people. During the period 2019-2022, the number of employees of Apple has increased by 20%, while Salesforce $Salesforce(CRM.US$, Amazon $Amazon(AMZN.US$, and Meta $Meta Platforms(META.US$ have all increased by about 100%. During this period, the company's cautious recruitment strategy has also paid off. Each new employee can bring the company $2.51 million in revenue, an increase of 114% compared with before the epidemic, far exceeding its peers. In contrast, employee productivity at Microsoft $Microsoft(MSFT.US$, Salesforce, and Meta has declined.
It’s not a news that Apple has high efficiency; it is quite shocking that it is so different from other big technologies after the pandemic. It is no wonder that in 2022, the stock price will drop the least among the big techs. Now that the company is still trying to cut costs further, which is definitely a good news for investors.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
