Apple Inc. is trimming down its workforce by eliminating a small number of roles within its corporate retail teams, according to people familiar with the matter. This marks the first known internal job cuts by the firm since it kicked off a cost-cutting campaign last year. The positions that are being shed are within the development and preservation teams, responsible for the construction and upkeep of Apple retail stores around the world.
The Move: Streamlining or Layoffs?
While the number of positions being slashed is not publicly known, it is likely to be very small. Apple is describing the move as a streamlining effort rather than layoffs. Affected employees were informed that the changes are designed to improve the upkeep of stores globally, and the company will support them through the process.
Apple has largely steered clear of corporate layoffs, even as it trims budgets and pares back much of its contracted workforce. Before the pandemic, the tech giant cut corporate jobs when it eliminated over 200 members from its self-driving car unit.
The Impact on Affected Employees
The employees who were let go from the development and preservation teams will have the opportunity to reapply for a range of similar roles. Those who don’t take a job will be provided with as much as four months of pay. However, while some positions can be re-applied for, some management roles are also being eliminated. These employees could potentially be rehired, but as “individual contributors”, they may not be compensated the same way as before. There are a few cases where some employees are exempt and will keep their jobs without having to reapply.
Apple’s Workforce in Numbers
Apple had 164,000 employees as of September 2022, when its last fiscal year ended. While the company did not expand its workforce as quickly as many of its peers during the pandemic, it did not have to lay off a significant portion of its workforce. Amazon and Google’s Alphabet have both cut tens of thousands of jobs.
Conclusion
The move to trim down its workforce and eliminate a small number of roles represents a new direction for Apple after the cost-cutting campaign it started last year. It remains to be seen if this will result in more actions to reduce its workforce, but for now, the majority of Apple’s employees remain unaffected.
