Apple Inc. is reportedly reducing its workforce within specific corporate retail teams, marking a shift in the company’s approach to layoffs. Although the exact number of employees affected remains uncertain, the job cuts are said to be small in scale and aimed at improving the company’s operations, according to Bloomberg and Business Insider. The news comes as other tech giants, such as Google, Amazon, Meta, and Microsoft, have announced significant workforce reductions in recent times.
The layoffs will primarily impact the development and preservation teams responsible for constructing and maintaining Apple’s retail stores and facilities worldwide. Reportedly, Apple has given them until the end of the week to apply for alternative roles within the company. Apple will offer up to four months of severance pay for those who’ll be unable to secure new positions.
The reports represent the first known instance of Apple laying off full-time employees as part of its broader cost-cutting initiatives. Notably, as per reports, Apple’s layoffs are significantly smaller in scale compared to those of other tech giants. In the past, CEO Tim Cook has stated that layoffs were considered a last resort. Nonetheless, the company has taken other measures to reduce costs, such as leaving some vacancies unfilled, slowing down hiring, delaying bonuses, cutting contracts, reducing travel budgets, and postponing projects.
The decision to implement layoffs comes amid growing concerns over potential economic downturns triggered by rising interest rates. This has led to massive layoffs across various sectors, and Apple’s recent move suggests the company is no longer immune to these pressures.
