Apple is spared the layoffs experienced by rivals Google and Amazon because the company didn’t overhire. Apple Inc. is under less pressure to reduce staffing levels than its technological contemporaries since it recruited more effectively in the first place.
When other major computer companies were hiring like crazy due to a virus outbreak, Apple was lagging. Furthermore, Bloomberg data shows that compared to its competitors, the company’s revenue per recruit is significantly higher.
This increased caution is paying off now. Although Apple has halted hiring in some departments and reduced overall spending, particularly in external research and development, the company has not yet resorted to the mass layoffs that are currently occurring at Amazon.com, Alphabet Inc.’s Google, Meta Platforms Inc., and other tech giants.
Peter Garnry of Saxo Bank A/S commented, “This suggests a superior quality of management at Apple compared to other technology businesses that read the signals during the epidemic incorrectly.”
This Thursday, the firm announced it would hire its first chief people officer to strengthen its human resources department. Deirdre O’Brien, who was also in charge of the store’s operations, had been handling HR matters.
Many tech firms were overstaffed during the pandemic because they expected a higher payoff from people’s newfound propensity for telecommuting, online shopping, and video gaming. They must now deal with the fallout. One of the largest recipients of Covid-19 lockdowns, Zoom Technologies Inc., said this week that it would be laying off fifteen percent of its workforce.
Conversely, Apple took things more slowly. While Alphabet and Amazon boosted their workforces by over 60% between 2020 and 2022, their growth was only 20%. As a result, those two businesses jointly announced nearly 30,000 playoff spots.
During the years of the epidemic, Apple likewise saw a significant increase in revenue per additional employee compared to the preceding three-year period. That sets it apart from the majority of its technological contemporaries.
However, Apple’s competitive advantage is only partially explicable by its larger workforce. The company’s efficiency extends beyond its recruiting practices, as evidenced by its highest sales per square foot.
According to analyst Shannon Cross of Credit Suisse Group AG, “Apple is frugal by nature.” Management’s ability to allocate resources wisely and narrow in on the most promising expansion possibilities is crucial.