Apple Implements Cost-Cutting Measures

apple remote work
Photo by Alexander Schimmeck on Unsplash

Apple adopts new strategies to curb spending amid economic uncertainty while competitors like Meta and Google go through layoffs.

In an effort to cut costs amid economic uncertainty, Apple is implementing cost-cutting measures across the company, including changes to employee bonuses and a reduction in travel budgets, as well as monitoring remote work attendance, according to a report by Bloomberg.

Unlike its competitors, such as Amazon, Google, and Meta, Apple has not resorted to layoffs. Instead, the company is scrutinizing budgets and reviewing spending to find ways to cut costs. Apple CEO Tim Cook has described layoffs as a “last resort kind of thing.”

The changes in the schedule of employee bonuses will primarily affect operations, corporate retail, and select other groups inside the company. In the past, Apple doled out bonuses and promotions once or twice per year depending on the division. The twice-a-year teams usually saw that happen in April and October. Under the new plan, that group won’t see bonuses or promotions next month, and all divisions will move to an annual schedule with the payments occurring only in October.

Apple has also reduced travel budgets for many teams and is requiring “senior vice president approval for more budget items.” In addition, the company’s human-resources department is monitoring how often employees are coming into the office versus working remotely.

Despite these cost-cutting measures, Apple has still avoided layoffs within the company, although it has laid off some contractors. Meanwhile, Meta announced that it is laying off another 10,000 workers, its second such round of massive job cuts.

While employees will still receive their full bonuses, the change in schedule could come as a blow to staff as they didn’t receive much advance notice. However, the highest-ranking employees at Apple typically see their bonuses paid quarterly.


Join us (We Have Cookies)

You're interested in news & tips about remote work? What luck! That's what we do! Better join our newsletter so we can hang out.