While other tech giants such as Meta, Microsoft and Google fired thousands of employees, Apple hasn’t given into the pressure, but why though?
Entering into the last quarter of the year, many tech companies started laying off thousands of employees. Major tech corporations such as Google, Meta and Microsoft laid off thousands of employees, whereas the tech industry collectively laid off around 220,000 in just a few months.
While other tech giants were laying off large parts of their workforce, Apple never caved into the pressure and kept holding onto its employees. But how did Apple go through the tech slowdown without lowering its employee count? Well, the answer is simple, and it’s ‘efficient hiring’.
The COVID-19 pandemic brought with itself a giant boom for the tech industry, profits skyrocketed and tech companies hired thousands of new employees. However, the pandemic boosted growth soon halted and the costs of new employees pulled down growth thus forcing the companies to start off a firing spree.
On the other hand, Apple was cautious throughout the pandemic. The tech giant had a safer approach towards hiring and hired far lesser employees than other firms during the pandemic. On top of this, Apple was also able to generate more money per employee than companies that over hired during the pandemic thus keeping it in the safe zone even after a devastating tech slowdown.
“This signals a better quality of management at Apple compared to other technology companies that clearly read the signals during the pandemic the wrong way” said Saxo Bank A/S’s Peter Garnry while talking about the tech layoffs.
According to data, Apple’s headcount from 2020 to 2022 has increased by just 20%, other giant tech firms on the other hand had an increase of about 60%.
“Apple is frugal by nature. It comes down to the management’s stewardship of shareholder dollars and a tight focus on what growth opportunities to invest in.” said Credit Suisse Group AG analyst Shannon Cross.