Apple amid the ongoing slowdown hasn't resorted to mass layoffs like its rivals in the industry. This is possible due to hiring more efficiently in the first place.
A report in Bloomberg says that Apple has only frozen hiring and limited spending in outside research and development to cope with the current economic crisis and looming recession. Data suggests that the phone company went for a more cautious approach when the rest of the industry was on a pandemic-fueled hiring binge. The company also generated far more revenue per new hire than its peers.
Saxo Bank A/S's Peter Garnry said this is a sign of the better quality of management at Apple compared to other technology companies that clearly read the signals during the pandemic the wrong way.
Apple also made a major announcement this week and said it will be hiring its first chief people officer. Until now, retail chief Deirdre O'Brien was taking care of HR duties.
The report said many tech companies betted on lifestyle changes like remote work, e-commerce spending, and video game habits. Apple's headcount only increased by 20% from 2020 to 2022. Google saw a 60% gain and close to 40% in Amazon. One of the biggest beneficiaries of the lockdown Zoom Technologies cut 15% of its jobs this week.
Credit Suisse Group AG analyst Shannon Cross said careful hiring practices are not the only reason for Apple's edge over competitors. It generates some of the highest sales per square foot which means the efficiency goes beyond hiring policies. "It comes down to the management's stewardship of shareholder dollars and a tight focus on what growth opportunities to invest in."