With major layoffs already happening at massive technology companies, Apple is bucking the trend by avoiding such decisions, instead resorting to slowing down new hires and delaying bonuses for various divisions. However, one report states that if the company proceeds with cutting off employees, not only will it deliver crippling damage to the company morale, but it will create a negative perception about a firm that is seemingly viewed as unstoppable, even in a slowing economy.
More evidence suggesting that Apple does not want to proceed with layoffs comes in the form of a pay cut taken by CEO Tim Cook. Last year, Cook’s compensation was $99.4 million, but for 2023, the Chief Executive is said to have taken a 40 percent pay reduction, taking home $49 million. Cook also stated during the company’s previous earnings call that laying off employees would be seen as a last resort.
If Apple had started laying off employees, Bloomberg’s Mark Gurman says in his latest Power On newsletter that the company would have a difficult time justifying this decision. This is because Apple has been more profitable than any other technology giant, generating $30 billion in profit and sitting on a cash pile of $165 billion.