Amid falling revenue, Apple has decided to expand its hiring freeze to cover additional roles, according to a new report from Bloomberg. The company also plans to delay bonuses for some of its employees.
Apple last year paused hiring for most jobs outside of research and development to reduce costs, then slow down acquisition and expenditure last July. At the time, the hiring moratorium did not apply to teams working on future devices and Apple’s long-term initiatives, but the freeze now applies to more jobs. Apple is leaving positions open as employees leave the company as a way to reduce the workforce.
In addition to the hiring slowdown, Apple plans to reduce the frequency of bonuses for some of its corporate workforce. Apple usually gives out bonuses and promotions once or twice a year depending on the division, with extra money paid out in April and October, but the company is moving entirely to a once-a-year bonus schedule . Bonus payments will be made in October for all teams, and employees are still set to receive their full bonuses.
CEO of Apple Tim Cook is also paid less this year, and he is set to receive $49 million in salary, bonuses and stock awards, down about 50 percent from the $99 million he was paid in 2022.
Unlike many tech companies, Apple has not announced layoffs, focusing instead on reducing hiring. Twitter has seen thousands of employees cut following the hiring of Elon Musk, and just this week, Facebook announced plans remove approximately 10,000 employees. Microsoft cut it AI ethics team this month following several earlier layoff events, as Google’s parent company Alphabet laid off 12,000 employees In January.
Apple sees early fiscal 2023 a five percent decrease in income year-over-year, and for the second fiscal quarter, the company was a dramatic decline is expected on Mac and iPad revenue, which will lead to similar sales numbers.