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Apple Freezes Hiring for More Job Roles to Cut Costs

LionTeeth said:
I don’t understand Apple these last six months. They are panicking and scrounging and penny pinching as if they’re about to go bankrupt, and now this.

Aren’t they a luxury brand worth trillions?
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In the investing world, we don't care about how much a company is worth. We only care about the growth rate of the company in terms of valuation, dividend yield and stock price. Unless you are going big, like trying to own or control the company or something.

In other words, we only care about the delta x, not x.

If Apple is a 1000 trillion dollar company with growth rate of 0%, you invest $1 in Apple, and a year from now you get $1 back when you sell the fractional share, how would Apple Inc. be a good investment?
 
Cant wait till next year when I pay $50-$100 more for the iphone to pay the USB-C tax.
 
sw1tcher said:
We do. If the economy wasn't strong, we wouldn't be seeing record job creation

data.bls.gov

Bureau of Labor Statistics Data

data.bls.gov data.bls.gov

View attachment 2107729

Tomorrow's jobs report will show the U.S. added another 200K+ jobs, putting the year-to-date total near or over 4000K


If the economy wasn't too strong for its own good,

www.economist.com

America’s economy is too strong for its own good

Despite market turmoil, the Fed is set on relentless rate rises
www.economist.com www.economist.com

The Curse of the Strong U.S. Economy

With GDP contracting in the first half of the year and a cratering stock market, it may seem surprising to describe the U.S. economy as “strong.” While the haze of macroeconomic data is exceptionally contradictory, the current reality is that highly profitable firms are employing a record number...
hbr.org hbr.org

the Fed wouldn't have hiked rates by another 75 basis points yesterday, its 4th in a row, to try to slow down the economy.

www.foxbusiness.com

Fed hikes interest rates by 75 basis points for fourth straight month

The Federal Reserve enacted its fourth consecutive 75-basis-point interest rate hike as it attempts to cool inflation without triggering an economic recession.
www.foxbusiness.com www.foxbusiness.com

This is just Apple taking a proactive just-in-case approach to running the business.
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Because thousands of people are leaving the labor force. Thats why unemployment is so low. If you think the economy is good, you are crazy.
 
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MacRumors said:


Apple in October paused hiring for most jobs outside of research and development, according to a report from Bloomberg. Apple is aiming to cut costs, and the new hiring freeze furthers a July plan that Apple implemented to slow hiring and spending.

Apple-Park-View.jpeg

The pause in hiring does not apply to teams working on future devices and long-term initiatives, but sources that spoke to Bloomberg said it will impact "corporate functions and standard hardware and software engineering roles."

Apple's website still lists open jobs, but the hiring process is on hold behind the scenes. News of the expanded hiring freeze was initially reported earlier this week by Insider, and the site said that Apple has "paused almost all hiring." Staff across multiple divisions have been told that Apple will not be onboarding new hires for several months, perhaps through the end of September 2023.

Insider's sources said that Apple has not provided budgets for new hires, and that budgets within the company are "under review" as Apple aims to cut costs.

Apple in a statement told Insider that it is continuing to hire, but because of the "current economic environment" it is "taking a very deliberate approach in some parts of the business."

"We are very confident in Apple's future and are investing for the long term. We want to be thoughtful and make smart decisions that enable us to continue fueling innovation for the long term," said Apple.

During the earnings call for the fourth fiscal quarter of 2022, Apple said that it would see slowing growth during the holiday quarter. Mac sales in particular are expected to fall dramatically compared to last year as Apple does not plan to debut any Macs in late 2022. There are no more products rumored to be launching this year, in fact.

Article Link: Apple Freezes Hiring for More Job Roles to Cut Costs
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Yes, people should go to the office and work if they're paid to do so we can see the apples, slow and less than stellar performance in the last couple of years due to the pandemic, caused product lines to be quite lacking. There are a number positions at Apple that are more concierge than necessary. And everybody's finding out that they don't need to upgrade their iPhone every year.
 
sw1tcher said:
We do. If the economy wasn't strong, we wouldn't be seeing record job creation
Click to expand...

you are just seeing jobs returning to pre-pandemic levels.. there is no "growth". the unemployment rate is the same as it was pre-pandemic. 3.5%... all that "positive" news you are being fed is just grasping at straws for 5 more days..

inflation and being energy beggers once again is not a good sign for the economy.
 
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Companies exacerbate booms and busts. Layoffs are coming to all of big tech and they will be coordinated so everyone will do them at the same time.

During good times I build savings, during bad times I use those savings.

Companies like Apple during good times load up on debt, engage in buybacks (they have bought back approx $500B in stock), and during bad times they lay off employees because they wasted all their savings buying back stock at peak prices.

What happened to financial prudence?
 
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4743913 said:
you are just seeing jobs returning to pre-pandemic levels.. there is no "growth". the unemployment rate is the same as it was pre-pandemic. 3.5%... all that "positive" news you are being fed is just grasping at straws for 5 more days..

infation and being energy beggers once again is not a good sign for
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yaxomoxay said:
Labor participation is too low.

View attachment 2107752
View attachment 2107750
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What is "too low"? Participation rate in US has been steadily falling for decades. If people have enough money not to work, that's their prerogative. US has some 10M job openings right now (and way fewer unemployed people) . Everyone who wants to work can get a job. What else do you want from the government?
 
Apple is not doing anything much different from any other Fortune 100 company. According to Jamie Dimon, and I think he's right, there is a 80-90% chance of a recession beginning early next year and Apple is doing its due diligence.
 
tgwaste said:
Because thousands of people are leaving the labor force. Thats why unemployment is so low. If you think the economy is good, you are crazy.
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People are leaving labor force because they can afford to (in part because low cost medical insurance is more available than ever). Economy has 10M job openings for those who want/need to work. It's all peachy.
 
Spock said:
Price hikes, inflated product lines, not really innovating much… Sounds like Apple circa 1995. Except with a crap ton of money this time.
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Apple ARM processors in Mac is the best innovation in years
agree with too many products
price hikes: inflation is crazy around the world, $ is getting strong, supply chain issues.
 
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PinkyMacGodess said:
'Decade'? It could be a generation or two...
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Fed messed up by QE, they should have stopped this as soon as economy recovered after 2008 crash.
They pumped $8T into the market, no one complained as stock market was going up.
Now fed had to stop pumping money into the market, every one is like oh my god this is going to last a generation.
and second mistake was fed keeping almost 0% interest when economy was strong.
Some one wanted negative interest rates.
 
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tgwaste said:
Because thousands of people are leaving the labor force. Thats why unemployment is so low. If you think the economy is good, you are crazy.
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that plot is almost straight line since 2012, except for 2020 to 21 due to pandemic, i don't see people leaving work force.
Am i missing something ?
 
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usbwire said:
At least they’re not laying people off, and instead just pausing hiring for most roles to save money. It sucks when a company goes to save money and decides to do by layoffs. Glad this isn’t the case.
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Apple, from what I can gather, doesn't eagerly over-hire like other big players in tech. Microsoft already did a very tiny layoff but a layoff nonetheless. Amazon has a program of cutting the bottom 6% of its office-based workers each year. Netflix has been laying off people for awhile. Meta and Google have been doing "quiet layoff" schemes lately.

The reality of the situation is every basis point increase at the fed is a punch to the gut of the tech sector. This sector has been a destination of last resort for cheap money that has nothing better to do than gamble on tech snake oil (at worst) or marginal value (at best). Money is not quite as cheap and people are pulling back. I don't know how much this is affecting the established players but I know it is affecting the surrounding startup remora around these companies.
 
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