Apple CEO Tim Cook addresses possibility of layoffs as a 'last resort'

In a recent interview with the Wall Street Journal, Tim Cook, CEO of Apple, spoke about the company's approach to layoffs amid the global economic downturn. Cook stated that layoffs are a last resort for Apple and the company is managing its costs by curtailing hiring in some areas, while still adding new employees where necessary.

He cited the company's hiring of retail managers for its upcoming physical stores in India as an example. Cook emphasized that Apple is taking a cautious approach to hiring and only adding employees where they are needed.

Apple remains cautious about layoffs

Compared to other major tech companies, Apple has taken a more measured approach to hiring during the COVID-19 pandemic, which has enabled the company to avoid widespread layoffs. In contrast, other tech firms such as Amazon and Meta rapidly increased their workforce over the past three years, doubling their staff.

As a result, these companies have recently had to lay off thousands of employees. In contrast, Apple's workforce has grown by 20% over the past three years, allowing the company to avoid the need for large-scale layoffs.

Apple's financial performance is not appearing favorable

After COVID-19 restrictions on its factories in China halted iPhone sales during the crucial Christmas holiday season, Apple reported its first revenue decline in nearly four years.

In contrast to what was anticipated by analysts, the company's October-December sales of $117 billion (€107 billion) were significantly lower than anticipated.

Additionally, Apple's quarterly profit decreased by 13% year-over-year to $30 billion (€27.5 billion). Its earnings have not met market expectations for nearly seven years for the first time.