What’s going on:
Apple is reportedly initiating its first round of job cuts since the start of the economic crisis, with certain roles in its corporate retail division being slashed.
The development and preservation teams responsible for managing the construction and maintenance of the tech giant’s retail stores are taking the biggest hit, with the affected staff being told they can reapply for other positions at Apple or face termination.
Some managerial-level employees have been offered the chance to remain with the company, but for a lower salary, according to the New York Post.
Why it matters:
Amid a major downturn in the tech industry, Apple has been successful in avoiding wide-scale layoffs, until now. The specific number of positions set to be eliminated remains uncertain.
Apple is characterizing the move as an effort to simplify its retail operations instead of a full-scale layoff.
This year, Apple CEO Tim Cook opted to take a 40% pay cut, resulting in his annual compensation dropping from a $98.7 million to $49 million for 2023.
In February, Apple started initiatives to part ways with hundreds of outside contractors, who were technically employed by other firms yet worked in partnership with corporate employees.
How it’ll impact the future:
Before the corporate retail cutbacks, Apple’s last round of layoffs happened in 2019, when 200 workers working on the self-driving car project were laid off.
Apple has now joined the growing number of tech companies that have to reduce their workforces due to a declining economy.
