When tech giants like Google, Amazon, Microsoft and others announced mass layoffs, many in the tech industry held their breath, waiting for Apple to follow suit. However, Apple has not laid off employees and currently has no plans to do so in the near future. Apple’s CEO, Tim Cook, has stated that layoffs are a last resort and that he will find other ways to manage costs instead of letting go of workers. He has not ruled out the possibility of layoffs entirely, but for now, Apple has managed to avoid them.
Recently, Google joined other tech companies like Microsoft, Amazon, Meta and Twitter by laying off nearly 12,000 workers. Now, Apple is the only major tech company that has not yet conducted layoffs. There are three reasons why Apple has not yet been impacted by the economic slowdown and recession.
Read More: Infosys allegedly fires 600 employees after they fail internal test
Apple CEO Tim Cook voluntary pay cut
Apple CEO Tim Cook voluntarily took a pay cut. As per reports, Cook feels that his salary is way too high. He has a pay cut and will be receiving an almost 50 per cent reduction in his compensation package at the company. In an SEC filing, Apple revealed that Tim Cook’s revised salary will be USD 49 million in total going forward. This includes a USD 3 million base salary, along with a 6 million bonus and an equity value of USD 40 million. In addition to this, Cook’s percentage of stock units, tied to Apple’s performance, will also rise to 75 per cent from the previous 50 per cent.
Back in 2022, Cook took home a salary package of USD 99.4 million. This included the same base salary of USD 3 million and around USD 83 million in the form of bonus and stocks. In 2021, Tim Cook’s total compensation package was around USD 98.7 million. Cook took a pay cut despite getting approval from the stockholders. Around 64 per cent of stockholders voted in favour of his salary.
Read More: Adani Group to hire ‘big four’ firms to carry out a general audit, says TotalEnergies
Apple didn’t hire as much as others
One major reason behind the recent tech layoffs was over hiring. Something that Apple did not do during the covid pandemic. In comparison to other tech companies, Apple scaled its workforce at a slower pace. As per a Forbes report, Apple followed the same hiring rate since 2016. As per reports, Apple has hired less than 7,000 employees in 2020. In September 2022, the company roped in close to 164,000 full-time workers in its corporate and retail divisions.
Apple does not spend money on freebies like other big tech companies
Apple does not provide free lunches to its employees, unlike other major tech companies, which helps the company save a significant amount of money. Tom Forte, senior research analyst at investment bank D.A. Davidson & Co told Wall Street Journal that Instead of firing them, Apple might just not replace workers who quit or retire. Apple might also change other benefits or perks that it offers, but these changes might not be big. Apple doesn’t give its employees free lunch like some other big technology companies, such as Google or Meta.
