Apple delays employee bonuses, stops hiring amid cost-cutting efforts

Apple has reportedly decided to delay the bonuses of certain divisions, alongside a halt on new hiring as part of its efforts to cut back costs. With this move, the firm joins its peers in Silicon Valley in trying to optimize workload during tough times, such that no need would arise for new recruitment.

The delay in bonuses has been revealed on the condition of confidentiality for the Apple employees involved, as the declaration has not been made public. The additional positions will be kept open if any employee leaves, with the company freezing hiring for jobs. Earlier, the tech-giant offered bonuses twice a year i.e., in April and October. But now, as per the new policy, employees will not receive bonuses or promotions in April, with the whole schedule being changed to an annual schedule wherein payments will occur only in October.

Chief Executive Officer of Apple, Tim Cook, commented that, the firm is taking careful steps toward optimizing expenditure. Apple will continue to invest in product innovation, he added.

Most of the divisions of Apple, including software engineering and services, have already been instructed to follow the guidelines for a once-a-year schedule for promotions and bonuses. However, staff in other sections like corporate retail, operations and others will still receive payments as per the biannual plan.

The major reason behind this decision includes tackling the burgeoning fear of inflation and recession. While iPhone maker has not begun mass layoffs at the scale of some other companies, it is reducing budget, cutting headcounts and freezing the new hiring process in various divisions.

Employees often use their bonuses for personal budgeting. Under the new rules, employees will receive full payment, albeit in a single installment. However, there could be some concern among staff regarding this move, given that Apple did not provide advance notice to some employees. Even so, this could help in retainment of employees that may have been planning to leave the company following the payout in the month of April.

Source Credit: https://www.straitstimes.com/business/apple-delays-bonuses-for-some-and-limits-hiring-in-latest-cost-cutting-effort