Apple, the only Big Tech company to have made mass layoffs so far, has reportedly begun laying off third-party contractors. according to New York PostThe iPhone maker has begun quietly cutting ties with hundreds of contractors.
In the past few days, the iPhone maker has begun cutting ties with hundreds of contractors — technically workers hired by outside agencies that work on projects alongside Apple employees — in a subtle move to cut costs, according to people familiar with the matter.
The iPhone behemoth has a large number of contractor employees in groups such as technical support and customer service. They rely heavily on contractors for things like localization of products and services, and things like Apple Maps.
Last August, Bloomberg reported that Apple had “laid off several of its contract-based employees over the past week, part of the tech giant’s push to control hiring and costs.” It’s unclear whether the company has been steadily laying off contractors since then, or if what the New York Post is reporting is the second big round.
“Apple is firing contractors outright instead of waiting for contracts to be renewed every 12 to 15 months,” said one contractor who rolled his eyes after Apple management assured him all jobs were safe. A few weeks ago, some were praising Apple for not over-hiring like other tech companies, the source added.
Apple did not comment on this matter. Laying off contractors is also a cost-cutting move, according to the report. The company has not disclosed the size of the contractor’s workforce, but reports suggest it is in the thousands. Apple CEO Tim Cook described layoffs at the company as a “last resort” and said, “You can never say never.”
The CEO said. Wall Street Journal Apple is managing very tight costs.
“We want to manage costs in other ways as much as we can,” he reportedly said. Apple faced protests in October and November as China grappled with a surge in Covid-19 and key supplier Foxconn’s main factory in the country. Cook said Vivid-related challenges “had a significant impact on iPhone 14 Pro and iPhone 14 Pro Max deliveries and continued into December.”
“Our revenue is down 5 percent year over year,” he added, due to a challenging environment. according to Wedbush Tech analyst Dan Ives said, “Apple didn’t over-hire during the pandemic. Apple’s employee count increased by seven percent in 2022 compared to 2021. Cook previously took a massive $35 million pay cut, or more than 40 percent in compensation.
