Third-party contractors are reportedly been let go at Apple, the only Tech company that has so far avoided major layoffs.
Per the New York Post, which cited sources with firsthand knowledge, Apple has quietly started to terminate relations with hundreds of contractors.
“Instead of waiting for contracts that are typically renewed every 12 to 15 months to expire, Apple is firing contractors outright,” said the report, citing sources.
The report claims that sacking contractors is a cost-saving measure.
The number of contractors employed by the company has not been publicized, but estimates place that number in the thousands.
Layoffs at Apple were described by CEO Tim Cook as a “last resort kind of thing,” but he said, “You can never say never.”
Cook told the Wall Street Journal that Apple is keeping costs as low as possible.
“We want to manage costs in other ways to the degree that we can,” he was quoted as saying.
Cook noted that Covid-related difficulties “significantly impacted the supply of iPhone 14 Pro and iPhone 14 Pro Max and lasted through much of December”.
“Our revenue was down 5% year over year” as a result of the hard market, he noted.
Apple did not overhire during the epidemic, according to Wedbush tech analyst Dan Ives.
Apple’s workforce count increased by around 7% in 2022 compared to 2021.
Cook has already accepted a $35 million salary reduction, or more than 40% of his total income.
Apple had supply chain difficulties in October and November as China experienced a Covid spike and protests erupted at Foxconn’s major manufacturing in the country.
