Apple CEO Tim Cook has previously called Apple layoffs a “last resort kind of thing.” But reports say the company views letting contractors go as cutting costs — not actually firing employees.
Apple Layoff: Apple has begun letting contractors go over the past few days, according to some media reports. The reports suggest that the iPhone-maker has cut ties with hundreds of contractors. These contractors are workers that are employed by outside agencies who work with Apple employees on projects.
The news of Apple firing contractors comes even as layoffs in tech sector continue to mount in 2023. In January alone, tech giants such as Google and Microsoft announced combined 22,000 layoffs.
The report in NYT said that Apple doesn’t consider contractors as their employees and so job cuts for such workers are not regarded as layoff in the company. It is being said that firing contractors is an easier choice for Apple considering it won’t have to pay severance or “face potential litigation from employees alleging wrongful termination.”
Apple hasn’t disclosed the size of its contractor workforce, but past reports suggest it numbers in the thousands, with three dozen staffing firms helping with project management, launch events and even creating Apple Maps.
Apple CEO Tim Cook has previously called Apple layoffs a “last resort kind of thing.” But reports say the company views letting contractors go as cutting costs — not actually firing employees. Getting rid of contractors as an easier way to thin out the workforce since Apple won’t have to pay severance or face potential litigation from employees alleging wrongful termination.
Besides, big tech companies like Google recently announced the layoff of 12,000 employees, of which more than 400 people got laid off in India last night. Just a few weeks after Elon Musk bought Twitter, he sacked most of the employees across globe to save costs and to rebuild teams. Microsoft also sacked 10,000 people and Meta remove 11,000 employees.
