Apple Slows Down on Hiring – Is the Company Laying Off Recruiters?

Apple appears to be serious that it would be employing a more serious approach to hiring as the company started slowing down in hiring.

As a result, the tech giant is laying off as many as 100 of its recruiters across Apple's offices in California, Texas, and Singapore, as per MacRumors.

Tim Cook Says Apple to Continue Hiring But More ‘Deliberately’— Revenue to Accelerate? — TOWSON, MARYLAND - JUNE 20: Customers shop at The Apple Store at the Towson Town Center mall, the first of the company's retail locations in the U.S. where workers voted over the weekend to unionize, on June 20, 2022 in Towson, Maryland. Chip Somodevilla/Getty Images

Apple Lays Off Recruiters

The recruiters are responsible for finding and reviewing potential new applicants and full-time employees for Apple. The layoff is part a "broader crackdown on hiring and spending," as per MacRumors.

Accordingly, the laid off recruiters were told that the reason for the layoff is due to a shift in the company's approach to spending plus a slowdown in hiring.

MacRumors reported that the workers would be given their pay and their benefits for an additional two weeks. In addition, they would be able to have their personal belongings returned from their offices.

Based on reports, the 100 recruiters who were laid off are not full-time Apple employees. They are, in fact, contractors who usually receive less pay and less attractive benefits in comparison to full-time employees.

According to MacRumors, Bloomberg reported last month that Apple would start slowing down its hiring pace.

The reports said that there are big changes planned for 2023 because Apple wants to slow hiring and spending for some teams. While not everyone will be affected, the company is not planning to add new staff in certain cases.

According to 9to5Mac, Bloomberg's Mark Gurman reported that Apple's plan comes during a time when the company expects to "cope with a potential economic downturn."

Apple CEO, Tim Cook, eventually confirmed this. He said that Apple would be "deliberate" in its hiring and investment because of the current economic climate.

"We believe in investing through the downturn, and so we'll continue to hire people and invest in areas, but we are being more deliberate in doing so in recognition of the realities of the environment," Cook said in last month's earnings call.

Apple Has to Deal with "Realities of the Environment"

According to Cook, Apple would continue hiring, but at a slower pace reflecting the "realities" of the environment," as per 9to5Mac.

The realities that Cook is speaking include high inflation. This led for people to become more cautious when it comes to "discretionary spending." And for many, Apple's products fall is included in the discretionary category.

In addition, because of the pandemic a lot of people tend reevaluate their priorities. There is an increase in the number of people taking early retirement. Some people also decided to reduce their working hours in order to have a better work-life balance.

There is also the skyrocketing energy costs in Europe because of the sanctions against Russia. The energy costs in household doubled already and larger rises are expected.

This condition will undoubtedly affect consumers' spending on electronics, among many other things.

Lastly, according to 9to5Mac, there are areas where demand for Apple's products remains strong. However, component shortages are affecting Apple's supply chain, which lead to lost in revenue.