Basic moments
- Every major tech giant except Apple has announced mass layoffs.
- In the last quarter of 2022, more than 50,000 people were laid off from large technology companies.
- A large number of laid-off employees were hired during the pandemic to handle requests for online services.
It was a sad time for many people working in large technology companies. Since the economic downturn, many companies have cut their workforce and shattered the dreams of many.
While nearly every tech brand has announced layoffs, one brand remains strong and allows employees to enjoy the fruits of their labor. I’m talking about Apple.
Watching, one might wonder what Apple has done differently to protect its employees from bad events like layoffs, as well as cutting costs to please shareholders.
Join me to find out where other tech companies have failed and how Apple remains strong.
Pandemic and mass hiring
As the world stayed at home to weather the pandemic, big tech companies have been running around hiring, primarily due to the increase in demand for online services such as shopping, online platforms and so on.
Here is an interesting fact. Amazon and Meta nearly doubled their workforce, Microsoft and Google increased their workforce by almost 50%, and Apple increased its workforce by just 20%.
Things were going great for everyone. Consumers used the services without any problems, and employees enjoyed their work. Few knew that their world would be turned upside down.
What’s going on with big tech now?
Surprisingly, Big Tech was rampant in hiring during the pandemic and could not foresee the future. The inevitable was about to happen – most of the tech giants announced mass layoffs:
It all started with Meta, the parent company of Facebook, which laid off over 11,000 employees. It was followed by Twitter, which laid off 4,400 of its 5,500 contract employees, nearly 80% of its contract staff.
There was a misconception that this was mainly because Meta lost money and Twitter was run by Elon, whose management style was widely criticized.
However, no one expected layoffs from other big names. Here are some companies that have announced massive layoffs:
- IBM: 3,900 employees, representing over 1.9% of the workforce.
- Alphabet (Google): 12,000 employees were laid off, roughly 6% of the workforce.
- Amazon: 18,000 job cuts worldwide, including 1% of the global workforce and 3% of the corporate workforce.
- Snapchat: 20% of employees laid off.
The worst thing about these mass layoffs was the suddenness. Tech companies have been forced to lay off some of their experienced employees without prior notice.
Everything was so unplanned that, according to Bloomberg, Twitter recalled many of its key employees, saying it was a mistake. Imagine being recalled by the company that humiliated you!
Reasons for mass layoffs
- The pandemic is taking control: while it’s good to know, it’s not good for companies profiting from services enjoyed by consumers staying at home. Once the pandemic was under control, consumers began to leave their homes, spending less time on online services.
- Financial hardship: As consumption of services declines, incomes fall – it’s like a chain reaction. In addition, many companies took out loans to meet the “expected”surge in demand for online services, but were rebuffed by the lifting of quarantines around the world.
- Mergers and Acquisitions: Several large sharks have acquired or merged to form larger companies. In addition to better customer service, the mergers also consolidated each company’s debts, forcing brands to take action to address them.
- Seasonal fluctuations: as you can now understand, there were fluctuations depending on the time, and when they end, companies have to look for measures to manage costs.
How Apple solves current problems
The world only started to notice Apple’s prudent moves when the CEO cut his pay to cut costs and avoid layoffs. The world was shocked when Tim Cook took a pay cut of more than 40% and received just $49 million in 2023, up from $89 million last year, according to CNBC.
This made everyone wonder, “Is Apple recession-proof?”Well, the answer is yes and no. Since Apple is one of the few brands that has not laid off employees during this period, many may wonder how it remains strong. However, there are several reasons for Apple’s success.
The main reason is that he never overdid it when applying for a job. During the pandemic, the brand increased its staff by only 20% and did not make rash acquisitions, which many companies later regret.
Rumor has it that the pandemic has forced Apple to cut back on its product ambitions rather than expand like its competitors. Apple has also made sure that its costs do not increase during the pandemic, which has resulted in lower operating costs for the brand.
What lies ahead for Apple?
While Apple hasn’t taken any desperate measures, it’s clear that a recession is close and the necessary steps need to be taken to deal with it. No, none of these companies will go bankrupt, especially brands like Apple, which have billions in reserves.
However, the situation requires an answer to one question: has Apple ever carried out mass layoffs? The answer is yes, it has. In 1997, Apple laid off about 4,100 employees. This was the year Steve Jobs returned to the company and tried to save it from imminent disaster. Since then, Apple has always tried to take every step with care.
Right now, Apple may have to take desperate measures again to keep investors happy. The company’s earnings report for February 2, 2023 can give us an idea of where the company is heading.
Regardless of how Apple handles the recession, we should value the brand for protecting its workforce and not just turning it down and benefiting from them.
Companies around the world should learn from Apple how not to get involved in something out of greed or a trend, and also remember each company’s social responsibility to society.
Many companies have offered severance pay to unexpectedly laid off employees, but if they had been careful when hiring, many would not have been hurt. I believe there is something called karma and it will eventually reverberate in Silicon Valley.
Best regards for Apple ❤️
I really hope that Apple can survive the recession without cutting staff. No, I don’t wish any bad things on other companies, but I just hope they realize their mistakes and make sure things like this don’t happen again.