Apple is taking action to reduce its operating costs in response to declining demand brought on by recessionary fears, following Google, Meta, and Microsoft. The iPhone maker is delaying bonuses for some corporate divisions and expanding a cost-cutting effort, Bloomberg reported on Tuesday.
AS per the report, the shift will take down the frequency of bonuses for a portion of Apple’s corporate workplace. Also, the firm is limiting hiring for more jobs and leaving additional positions open when employees leave.
Before this, the Cupertino-headquartered tech giant doled out bonuses and promotions once or twice per year depending on the division.
The employees in some divisions got bonuses twice a year in April and October. According to the strategic plan, however, the group won’t get incentives or promotions starting next month, and all divisions will switch to a yearly schedule, with payments made only in October.
The majority of Apple’s divisions, including software engineering and services, had already switched to a once-per-year timetable for bonuses and promotions, but employees in operations, corporate retail, and other areas were still on the previous biannual plan, the article said.
Apple is the most recent company to join the group of companies that have reduced costs as a result of a number of post-Covid factors that have hurt demand.
Meta announced later job cuts to improve its “financial performance in a difficult environment” On Tuesday. “We expect to reduce our team size by around 10,000 people and to close around 5,000 additional open roles that we haven’t yet hired,” CEO Mark Zuckerburg said. This is in addition to the 11,000 employees that the tech giant fired just months ago.
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