Apple Expands Hiring Freeze, Delays Bonuses for Some Employees

[steve09090]

It's because of TC Apple hasn't had any massive layoffs like Meta, google, Yahoo, Cisco, Dell, HP, Zoom, PayPal, Salesforce, Microsoft, etc.

Today Meta announced another layoff, this one being 10,000 employees, bringing Meta's total to 21,000 people.

I remember the juvenile mocking from people here regarding Cook's announcing twice in the recent past Apple would be hiring more cautiously.

Cook's worth every dollar of his salary and benefits for his outstanding leadership, business acumen, and being responsible for 165,000 Apple employees.

Sadly, the juvenile mocking continues in this story's comments.

As usual it’s a race to the bottom.

Meanwhile:
12,000 more people laid off from Google
21,000 being laid off from Facebook
10,000 laid off from Microsoft
5,000 laid off from Twitter (from 7,500 to 2000 employees)
Apple: freeze on hiring

One of these companies stands out as one who isn't destroying families.

You guys remember that company that stopped hiring, cut down on their workforce, eliminated bonuses and ended up thriving?

Yeah me neither 🙂

When Steve Jobs returned, he laid off 4,100 before turning them around.

 

[rpmurray]

... the company is expecting a notable decline in Mac and iPad revenue ...

So discontinuing the 27 inch iMac is still producing dividends.

 

[wilhoitm]

Another trillion-dollar company making employees carry the weight.

I've got news for you... The employees carry the weight at every company and that is what they are paid to do! This is not a Socialist or Communist economy!

 

[Karma*Police]

They don't have 2 trillion in the bank, that is the company's valuation.

What kind of a lunatic ideologue downvotes factual information??

Not to mention, even if they did have 2 trillion in the bank, that’s not money they can just give away to employees. That money would belong to the millions of shareholders, many of whom wouldn’t even own AAPL stock directly, but through other investments like ETFs and mutual funds which they bought/earned through hard work of their own.

 

[steve09090]

Another trillion-dollar company making employees carry the weight.

Making employees carry the weight means laying them off and putting more work on the rest, like Alphabet and Twitter. Apple has just stopped hiring. Big difference. As is the structure of many companies, particularly in the U.S., the highest paid employees (corporate) have bonuses as part of their contract. These have been delayed.

I cant see how employees are worse off in Apple.

Most other companies on the other hand…

I've got news for you... The employees carry the weight at every company and that is what they are paid to do! This is not a Socialist or Communist economy!

Actually if it were a Socialist or Communist Society, they would hold more weight. Kind of the definition of Communism. Notwithstanding, People are always the biggest resource any company has.

 

[ShabbaRanks]

So Microsoft cut staff from the one dept it’s going to need lots of help from now it’s blithely incorporating ChatGPT into everything? Typical.

 

[steve09090]

So Microsoft cut staff from the one dept it’s going to need lots of help from now it’s blithely incorporating ChatGPT into everything? Typical.

It says a lot, that Microsoft decimated its ethical department removing more than 75% of its employees.

 

[Squeak825]

People throw on the "stock options" word like they actually understand pay at tech companies. The vast majority of pay at Apple isn't in OPTIONS. It's in grants, so you literally get 100 shares of AAPL at your next paycheck for example.

RSUs are not taxed at a lower rate. They're taxed at ordinary income rates. The capital gains after the grant vests is taxed at a lower rate--at capital gains tax rates. You would be taxed at that same rate if you bought 100 shares of AAPL and you later sold them for a gain. This kind of misinformation shows why average Americans' personal finances are in such terrible shape. This kind of info isn't even rocket science. Just some basic understanding of income and taxes.

Jobs' incentive comp was paid in options, and not RSU's.

 

[JGIGS]

Why does it seem like Tim Cook taking a pay cut this year seems like he is doing us a big favor to us? Am I wrong? I feel like there's a catch, LOL. 😒

Rising wealth inequality has been a huge issue and just continues to get worse. All these companies wonder why sales are down, sure inflation is a part of it but all the wealth in a small % of the population means the majority of the population doesn’t have a lot of money to spend on the nice to have things.

When top execs, owners and majority shareholders hold and control all the wealth there aren‘t enough people to buy their goods or services, companies are going to continue to see year over year declines. Sure they donate to charity funds but most of these funds sit there and don’t get handed out and they also only benefit select groups of people.

Math never lies.

 

[StellarVixen]

They don't have 2 trillion in the bank, that is the company's valuation.

Say it louder for those in the back.

Why do people confuse these two I really do not understand.

 

[MichaelAdam]

You realize why CEOs take a $1 salary, right? They get paid in stock options instead, which are taxed at a lower rate

Of course I do but getting stock options is not the same as you work to add value to your stock.

 

[lkrupp]

It's gotta be scary when you only have 2 trillion in the bank.

So depressing to read something posted out of complete ignorance.

 

[steve09090]

So depressing to read something posted out of complete ignorance.

Somebody made a mistake. Why put them down like that?

Say it louder for those in the back.

Why do people confuse these two I really do not understand.

Okay, let’s be clear here. The stock valuation is what it is worth on the Stock Market. If the stocks held by Apple are sold, then they become liquid. So whilst Apple don’t hold $2 Trillion in the bank, they could absolutely liquidate some of that to have available funds. Tell me I am wrong or don’t you understand how this works?

 

[macduke]

They don't have 2 trillion in the bank, that is the company's valuation.

202 billion. S-C-A-R-Y !

Hopefully these bonuses are only cut from senior management. Imagine sitting on a 200 billion cash hoard and cutting bonuses for regular employees. Apple still makes so much freaking money compared to the rest of tech it’s kinda gross.

 

[ian87w]

The "no layoffs" thing is tricky. Many companies use contract workers from outsourcing companies. They're not considered as full time employees of the company despite working full-time for the company. So when it's time to cut jobs, their contracts were simply not extended. Voila, no layoffs.

 

[relaxedpanda]

Just to correct the article, Apple has in fact laid off employees

 

[planetMitch]

Well, I made a boo boo and now can't figure out how to delete this

 

[watakoola]

Future profits? Apple needs to weaponize their R&D and then nab a few Defense contracts for our forthcoming WWIII. Imagine Apple M1A2 Abram Tanks finished in Yellow, Deep Purple and Gold. How exhilarating!
/s (I hope...)

Yeah, but... the tank wheels will be far too expensive (and only sold as an option).

 

[watakoola]

Tim Cook should be paid sweet FA until he gets this goddamn crap software sorted out

Maybe you could step in, old chum, and offer to solve the problems and issues?

 

[planetMitch]

Somebody made a mistake. Why put them down like that?


Okay, let’s be clear here. The stock valuation is what it is worth on the Stock Market. If the stocks held by Apple are sold, then they become liquid. So whilst Apple don’t hold $2 Trillion in the bank, they could absolutely liquidate some of that to have available funds. Tell me I am wrong or don’t you understand how this works?

Well, you're partly wrong.

When Apple went public, they sold the stock to raise money. Some of it they gave away as incentives. The stock they buy back (at least my belief) is retired when they purchase it on the open market and no longer available to do anything with. So... "they could liquidate some of that" is incorrect. They would have to issue new stock and sell it on the market which would bring more funds. But they don't need to do that.

 

[Abazigal]

Welcome to Tim Cook's Apple, Everyone.

Looking at how other companies like Facebook, Google and Twitter are faring, I will say Apple is being run extremely well in comparison. Management doesn’t come across as a bunch of headless chickens, products are being updated on a regular cadence (no fear of any of them being randomly canned or discontinued), and no mass layoffs (at least none that are being publicised).

I really can’t think of a better person at the helm of Apple right now.

 

[steve09090]

Well, you're wrong.

When Apple went public, they sold the stock to raise money. Some of it they gave away as incentives. The stock they buy back (at least my belief) is retired when they purchase it on the open market and no longer available to do anything with. So... "they could liquidate some of that" is incorrect. They would have to issue new stock and sell it on the market which would bring more funds. But they don't need to do that.

And there we go. Someone can be wrong about things. We’re not all knowledgeable about stocks, bonds and shares. So, why do people have to put others down if it’s something they think, but not an expert in?

 

[laptech]

Given the current serious problems in the global economy would you rather:

1. work for a company, like Apple, that is pausing some hiring, keeping some vacant positions open and delaying bonuses for some employees in an effort to avoid layoffs, or

2. work for one of the companies that has announced major 2023 layoffs?

The Companies Conducting Layoffs in 2023: Here’s the List

After a rash of layoffs at the beginning of the year, some companies are cutting jobs as 2023 winds down and a strong labor market shows signs of cooling.

www.wsj.com

Some "highlights"

Amazon - 18,000
Alphabet - 12,000
Meta - 10,000 (their second wave of layoffs)
Microsoft - 10,000
Ericsson - 8,500
Walt Disney - 7,000
Dell - 6,600
IBM - 3,500
SAP - 3,000

And, yes, Tim would be well advised to include himself and his upper management team in the group that will have bonuses delayed. It would be a bad look to do otherwise.

When a large number of the worlds top tech companies begin laying off thousands of their employees it is a sign that there is something majorly going wrong with the economy and those in power need to take note because already there is a Silicon Valley bank that has gone under which is having a ripple effect around the world. Who else is going to fail?

Apple is doing very well to weather the storm but how long can they hold out for before they are forced to start laying people off.

 

[0924487]

Cash on hand can be defined as cash deposits at financial institutions that can immediately be withdrawn at any time, and investments maturing in one year or less that are highly liquid and therefore regarded as cash equivalents and reported with or near cash line items.

• Apple cash on hand for the quarter ending December 31, 2022 was $51.355B, a 19.65% decline year-over-year.
• Apple cash on hand for 2022 was $48.304B, a 22.89% decline from 2021.
• Apple cash on hand for 2021 was $62.639B, a 31.12% decline from 2020.
• Apple cash on hand for 2020 was $90.943B, a 9.56% decline from 2019.

source

Not good...

 

[0924487]

You guys remember that company that stopped hiring, cut down on their workforce, eliminated bonuses and ended up thriving?

Yeah me neither 🙂

There are many examples of companies that have cut back on hiring, reduced their workforce, eliminated bonuses, and still managed to thrive. Here are a few examples:

1. Netflix: In 2011, Netflix announced that it was separating its DVD rental and streaming businesses, which led to a significant decline in the company's stock price. As a result, the company had to cut back on its workforce, eliminate bonuses, and reduce its hiring. However, the move proved to be beneficial for the company in the long run as it helped them focus on their streaming business and expand their reach globally.
2. IBM: In the early 1990s, IBM went through a period of significant restructuring which involved cutting back on its workforce and eliminating bonuses. The company shifted its focus towards providing services rather than manufacturing hardware, which proved to be a successful strategy.
3. Ford: In the mid-2000s, Ford went through a period of restructuring and cost-cutting, which involved laying off workers and cutting executive pay. The move helped the company reduce its debt and improve its financial position, allowing it to invest in new products and technology.
4. Starbucks: In 2008, Starbucks closed hundreds of stores and cut back on its workforce to address declining sales and profitability. The move helped the company reduce its expenses and improve its bottom line, which eventually led to its recovery and growth.
5. General Electric: In 2017, General Electric announced plans to cut thousands of jobs and reduce its dividend payout. The move was part of the company's efforts to focus on its core businesses and improve its financial performance. Despite the initial backlash, the strategy has helped the company improve its profitability and strengthen its position in the market.

(thanks ChatGPT 😂)