Apple is cut costs in an attempt “ to streamline operations during uncertain meter , ” according to a new study . The company is reducing the frequence of some employee incentive , limiting hiring , and choosing not to replace some employee who have allow .
Bloombergreporter Mark Gurman , citing “ people with knowledge of the situation … ( who ) asked not to be identified because the architectural plan has n’t been annunciate publicly , ” compose that a belt - tightening mathematical operation began last July in response to rising rising prices and care of ceding back , but that this is now expanding and deepening . Not without reason : Apple ’s tax revenue weredown 5 percent year - on - yearover the holiday period amid iPhone output problem and soft Mac demand , and are forecast to be down again in the current period .
“ We ’re being very prudent and thoughtful on disbursement , ” CEO Tim Cook say at a shareholder meeting last week , “ and we continue to be very deliberate when it comes to hiring . ”
Gurman notes that toll - cut measures at Cupertino have included a reduction in locomotion budgets , an increase in executive spending supervising , and some layoffs of contract workers ; even Cook himself hastaken a pay cut . But it ’s worth emphasise that Apple has generally avoided the severe cuts see at other tech companies : as the Macalopereportedearlier this yr , Google , Microsoft , Amazon , Facebook , Spotify , and many other tech whale have recently repair to mass layoffs .
Partly this may be because of Cook ’s conservative trend as a CEO : Apple rarely extends itself as much as rivals during sales gold rush , which mean less penury for retrenchment during skimpy times . But it ’s also fair to say that “ skimpy times ” is a relative terminus . During that supposedly disappointing quarterly report , Apple noted that its services division alone , big enough to be a high - ranking Fortune 500 fellowship in its own right , go against the $ 20 billion mark in revenues for the first time . ( Intel as a whole made $ 14 billion in its most late quarter ; Netflix made less than $ 8 billion . ) The iPad division was up by 30 percent , and the company was still wildly profitable .
So while Apple is clear taking matters seriously , it would be a mistake to think the society is in bother .
