Tim Cook says Apple will only make mass layoffs as a "last resort"

[midian182]

In context: While the majority of large tech companies have implemented mass layoffs this year, one notable exceptions to this practice is the biggest firm of them all: Apple. According to CEO Tim Cook, such mass layoffs will only be a "last resort" for the iPhone maker.

Alphabet, Amazon, Meta, Salesforce, and Microsoft are just some of the many companies that have made massive job cuts this year, the result of a shaky economy, low demand, and overhiring during the height of the pandemic. But one conspicuous name absent from the list is Apple.

In the company's second-quarter 2023 earning call, Cook told CNBC that it isn't planning on joining its rivals in culling jobs.

Cook said layoffs are not something Apple is considering right now. "I view that as a last resort and, so, mass layoffs is not something that we're talking about at this moment," he told CNBC's Steve Kovach.

Cook didn't rule out the possibility of job cuts, and it's not as if CEOs are averse to going back on their word, but Cupertino's employees will likely feel relief upon hearing that their jobs are safe for now.

Apple's share price has been rising over the last six months

However, Cook did add that Apple isn't immune to the effects of the current economic climate. The company is now taking an "extremely prudent" stance toward hiring, and it is implementing cost-cutting measures such as delaying bonuses or giving employees a single bonus instead of the usual two.

Apple has reportedly laid off some staff this year. A few of its corporate retail employees were let go, though the numbers are said to be tiny in comparison to the thousands released by other companies.

The main reason why Apple has managed to avoid mass layoffs so far is that, unlike the other tech giants, it never massively increased its recruitment numbers during the pandemic boom times.

Even Cook is doing his part to try and save Apple money. The boss voluntarily took a 40% pay cut for 2023, though he's unlikely to sell the company iPhone to make ends meet. Despite his year-on-year compensation falling by $35 million, Cook will still receive around $49 million this year.

Apple certainly isn't struggling. It reported $24 billion in net income for the last quarter on $95 billion in total revenue, while its market cap stands at $2.62 trillion.

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https://www.techspot.com/news/98579-tim-cook-apple-only-make-mass-layoffs-last.html

 

[wiyosaya]

IMO, if crApple layoffs become a necessity, the first person Cook should consider laying off is himself. Or, at the absolute least, reduce his own salary to $1.00/year. IMO, he's not worth more than that anyway.

 

[m4a4]

Honestly, considering the profit margins Apple loves to see, I don't see how they can excuse that. Especially when they admit that they didn't go on a hiring spree...

 

[Lew Zealand]

Trillion dollars in revenue, quarter trillion in net income over the last 3 years. Maybe they'll find a few mil here 'n there in the cushions to keep everyone employed.

 

[p51d007]

Corporations, are only in a business, to keep stockholders happy.
As long as stock increases, they can do whatever they want.

 

[JKnight]

Corporations, are only in a business, to keep stockholders happy.
As long as stock increases, they can do whatever they want.

Always about the next quarter.

 

[Kirby1]

Considering they sell cheap ARM parts at huge mark-ups, it would be a bad look if they started laying people off.

 

[ferrellsl]

It all depends on Cook's own interpretation of "mass layoffs" and "last resort". You can bet that his interpretation will always be in his and Apple's favor.

 

[Vanderlinde]

If I do a year less in revenue, I.e 250k vs 350k, I just admit it and be like OK that could have bin done different. But if a company still makes millions in profit even tho it ditched a quarter of it's staff or workforce, it's just wrong.

Really, there's no excuse in this greedy world today.

 

[Dimitrios]

He could start a gofundme account to help out his workers. *STRATEGERY 101

 

[pcnthuziast]

In other words lay offs are imminenet. Got it.

 

[Starscream07]

Trillion dollars in revenue, quarter trillion in net income over the last 3 years. Maybe they'll find a few mil here 'n there in the cushions to keep everyone employed.

Worst part is they are actually about to do it. They are just calling it "performance based". In other words, a temporary PIP

 

[Starscream07]

In other words lay offs are imminenet. Got it.

Yes. It got leaked

 

[CommonSense]

Man this comment section is something else lol .... The news is everyone gets to keep their jobs, and the comment section is a mix of fire the ceo cause he sucks and of course there shouldn't be any (even though every other tech giant has done so) .... people with negative comments about positive news need to grab a beer and take the day off.

 

[Kashim]

Tim Cook says Apple will only make mass layoffs as a "last resort"

Translation: Apple will only make mass layoffs when our massive profit margins are threatened.

There, was that so hard?