Company also reducing hiring, investing 'for the long term'
Apple workers who were supposed to claim bonuses next month will have to wait for another six months, according to a report.
That’s because the tech giant will now be paying full bonuses in October, instead of distributing parts of the benefit in April and the rest six months later, reported Bloomberg.
While the majority of Apple’s divisions had already moved to a once-a-year schedule for bonuses and promotions – including software engineering and services – workers in operations, corporate retail and other groups are still in the old setup.
The move is part of the cost-cutting effort at Apple amid uncertain economic times, according to the report.
Recently, Home Depot announced it is adding $1 billion to its annualized compensation for frontline, hourly workers within fiscal year 2023.
Earlier, Starbucks announced a partnership with Fidelity Investments to launch a savings program allowing staff to contribute a part of their after-tax pay to a personal savings account, with the company contributing $25 and $50 credits at milestones up to $250 per person.
Companies like Google, Twitter and Meta have all announced layoffs as they also try to cut costs. And more layoffs may be on the horizon, according to a recent report.
This, however, has not been the case for Apple. The iPhone maker, instead, is cutting hiring intentions and even paused hiring across several divisions, according to the Bloomberg report.
“Well, we invest for the long term, and we run the company for the long term. And so if you look at what we’re doing, we’re also recognizing the environment that we’re in is tough. And so we’re cutting costs. We’re cutting hiring,” said Apple CEO Tim Cook in a CNBC report.
“We are being very prudent and deliberate on people that we hire. And so a number of areas in the company are not hiring at all.”
Apple has also increased scrutiny on office attendance, and many worry that this could be a precursor to layoffs for those who do not meet the three-days-per-week threshold, according to Bloomberg.
Apple has also reined in travel budgets and is now requiring senior vice president approval for more budget items, according to the report.