Apple managed to stave off announcing any layoffs as, unlike other technology companies like Microsoft, Meta, Alphabet, and others, the California-based firm did not commit to hiring aggressively. However, this strategy does not mean the firm is in calmer waters. According to the latest report, Apple is actively following cost-cutting measures but is taking a different path here.

Apple is said to have delayed bonuses for some employees while also slowing down on new hires

As the company prepares for what could be a slowing economy, Bloomberg reports that Apple has delayed some bonuses for some of its corporate workforce. The iPhone maker usually issues bonuses once or twice a year, but that normally depends on which division is being talked about and if their performance for the entire calendar year warrants that bonus. These payments are given in October, but Apple is said to switch to a single bonus payout per year instead of two.

Additionally, the company has slowed down hiring, which is something we reported about last year. Apple CEO Tim Cook stated that layoffs would be viewed as a last resort, implying that the company has valuable assets that can contribute a boatload in the future, so it likely does not want to trim the talent pool and lose existing employees to the competition. To prevent layoffs from materializing, Cook himself was said to take a 40 percent pay cut, meaning that his compensation for this year will be $49 million instead of $99.4 million for 2022.

Apple CEO Tim Cook is said to have taken a massive 40 percent pay cut as part of the company’s cost-cutting measures

Apple has a multitude of products arriving later this year, but none of them are expected to rake in the revenue that its iPhone range pulls. Its most ambitious product to date is the rumored AR headset, but at a price that is reportedly in the $3,000-$5,000 range, we do not expect that it will generate the same success as the iPhone 15 series. Speaking of the iPhone 15 series, Apple is apparently following a strategy that will force consumers to pick up the ‘Pro’ models in droves.

That strategy happens to be incorporating more exclusive features to the iPhone 15 Pro and iPhone 15 Pro Max to raise revenue and the average selling price. Unfortunately, these models will arrive in the fourth quarter of 2023, so Apple will have to find a way to create a consumer brand for its existing and upcoming products.

News Source: Bloomberg