Earlier, Apple reported its first year-over-year revenue drop since 2019 for the December quarter.
To cut the cost of corporate expenses, tech-giant Apple is delaying the bonuses of its employees, according to a report on Bloomberg. The change in policy is expected to reduce the frequency of bonuses for a portion of Apple’s corporate workforce. The decision comes in the backdrop of Apple CEO Tim Cook confirming to cut the extra compensation of the employees.
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The Bloomberg report states that some teams previously received bonuses twice a year in April and October. But now these teams will receive the full amount in the autumn. The CEO of Apple is keeping a closer eye on travel expenses and keeping some jobs open in a restricted manner. The change is the recent illustration of Apple’s ongoing cost-cutting and careful monitoring of corporate expenses as rivals like Google, Meta and Amazon experience layoffs amid a challenging period for the tech sector. Apple hasn’t made any layoffs, but it has drastically reduced hiring across many non-engineering departments.
In a conversation with CNBC, Tim Cook said, “Well, we invest for the long term, and we run the company for the long term. And so if you look at what we’re doing, we’re also recognising the environment that we’re in is tough. And so we’re cutting costs. We’re cutting hiring. We are being very prudent and deliberate in the people that we hire. And so a number of areas in the company are not hiring at all.”
Earlier, Apple reported its first year-over-year revenue drop since 2019 for the December quarter. It started to tighten its belt last July, cutting headcount targets and budgets and pausing hiring across several departments. Apple cut back on travel expenses and now requests more budgetary elements be approved by the senior vice president. Along with Tim Cook accepting a pay cut, Apple also let go of some contract workers.
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For those who are uninformed, Cook’s compensation for 2022 was $84 million. A $3 million base pay and a $6 million yearly cash incentive will be included in the $49 million compensation package in 2023. Cook will also receive an equity reward worth $40 million, down from $75 million in 2022.
Sundar Pichai, the CEO of Google, is also reported to have taken a significant salary cut after letting go of thousands of workers, in addition to Tim Cook. Pichai recently disclosed that all positions above the “senior vice president” level will see a substantial decrease in their annual bonus. Although he did not mention his pay reduction, it is obvious from the statement that Pichai has also taken a pay cut.
