Apple Inc (NASDAQ: AAPL) is postponing perks for some corporate divisions and expanding a cost-cutting effort joining its peers in streamlining operations amid business slowdown and economic uncertainties.
The shift will reduce the frequency of bonuses for a portion of Apple’s corporate workforce, Bloomberg reports.
Apple is also restricting hiring and leaving additional positions open after employee departure.
On Tuesday, Meta Paltforms Inc (NASDAQ: META) shared a second downsizing drive, slashing team strength by around 10,000 people and closing about 5,000 additional open roles.
Apple usually doled out bonuses and promotions once or twice per year, depending on the division, in April and October. Now Apple proposes to forego bonuses or promotions for April, with the payments occurring only in October.
Most of Apple’s divisions had migrated to a once-a-year schedule for bonuses and promotions, including software engineering and services, barring staff in operations, corporate retail, and other groups.
The move applies to engineers, non-managers, and mid-level managers but not senior employees at the director level and above.
Apple began tightening last July, reducing budgets, cutting headcount goals, and pausing hiring across several divisions.
During Apple’s shareholder meeting last week, CEO Tim Cook highlighted being especially careful with money.
Apple curbed travel budgets and now requires senior vice president approval for more budget items. It also has laid off some contract workers across the company, with Cook taking a pay cut.
Apple’s current policy requires employees to work from an Apple building thrice weekly, triggering fear of downsizing amongst employees lest they miss the benchmark. The concerns have spread to Apple’s retail staff.
Price Action: AAPL shares traded lower by 1.44% at $150.39 premarket on the last check Wednesday.
Photo via Wikimedia Commons
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This article Apple Joins Cost Cut Bandwagon, Eases On Bonus, Hiring, Triggers Employee Fears Of Layoffs originally appeared on Benzinga.com
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Source: https://finance.yahoo.com/news/apple-joins-cost-cut-bandwagon-145845685.html