KEY POINTS
Apple is firing contract-based workers outright: ReportContractors claimed they were treated as ‘second-class citizens’Apple did not over-hire during the pandemic unlike Meta and other big tech firms
Apple is quietly laying off hundreds of contractors, and some contractual workers have revealed how they are allegedly put into a poor work environment, a report said.
The Cupertino-based company has started cutting ties with hundreds of contractors over the past few days, according to the report by the New York Post’s On The Money. Sources revealed that instead of waiting for contracts to expire, Apple is axing contractors outright.
Sources further said Apple doesn’t see the move of letting contractual workers go as firing employees but as part of the efforts to cut expenses.
One contractor claimed to have felt “blindsided” by Apple’s recent decisions. It is unclear how many contractors the tech giant has but past reports suggest that the company has thousands of contractual workers.
Insiders, cited by the New York Post, also claimed that contractors felt they were being treated as “second-class citizens” since independent contract-based workers generally do not work at the headquarters and are not eligible for health insurance and stock options.
Apple has a large number of contractual workers working on customer service and technical support, as per 9To5Mac. The company also relies on contractors to manage Apple Maps and the localization of services and products.
The company last laid off contractors in August, as reported by Bloomberg. At the time, the layoffs reportedly affected the recruitment unit. About 100 contract-based recruiters were let go in mid-August, the outlet reported.
Apple is the only big tech company that has not yet announced substantial workforce reductions, unlike Alphabet, Meta, Microsoft and Amazon.
The reason why Apple has avoided massive workforce cuts as with other big tech companies could be because the company did not go on a widespread hiring spree during the pandemic, as per Fortune.
“This signals a better quality of management at Apple compared to other technology companies that clearly read the signals during the pandemic the wrong way,” Peter Garnry of Saxo Bank A/S told the outlet.
In comparison to Alphabet which saw a 60% increase in workforce figures during the pandemic, Apple’s headcount only increased by 20% during the 2020 to 2022 period.
Apple CEO Tim Cook said the company had to make changes in its hiring processes and spending amid the global economic downturn that forced many tech firms to cut costs. “I view layoffs as a last resort kind of thing,” Cook recently told the Wall Street Journal.
Cook did admit that the iPhone maker “can never say never,” but that it wants to manage operational costs “in other ways.”
Apple has avoided massive layoffs unlike other big tech companies.
2023-02-18 16:00:03
Link from www.ibtimes.com
Apple Inc. announced Tuesday that it is laying off hundreds of contractors, in a move that points towards a massive restructuring of their workforce.
CNBC reported that the layoffs, which includes both domestic and international contractors, are primarily in Apple’s retail marketing and retail store divisions. The news was first identified by MacRumors, who obtained a copy of a letter sent to retail marketing workers at Apple’s Cupertino campus.
The letter states that the contractors will “no longer be needed” due to reduced retail store customer visits and shift in focus towards online customer service. In response to the letter, Apple’s VP of People, Deirdre O’Brien, issued a statement:
“We are making difficult decisions as we begin to make changes in our retail business and look for efficiencies in our operations by eliminating roles. We are closely monitoring the economy and we are confident that as market conditions improve we can grow our teams again.”
The layoffs come on the heels of Apple’s week-long celebration of Earth Day, during which the company highlighted their commitment to environmental protection, promoting a green economy and reducing carbon. It also comes on the heels of a hugely successful quarter, with iPhone sales up 31 percent, Mac sales up 48 percent, and wearables up 67 percent.
Industry analysts believe that Apple is restructuring its workforce to remain competitive in the retail market space, as well as streamlining customer service. It is unclear how many positions have been affected, but it is believed to be in the hundreds.
Apple plans to use this restructuring of their workforce as part of their overall business strategy to sustain their edge over their competition in the global market, as well as to continue to invest in their robust research and development team in order to develop the technologies of the future.
While Apple has been successful over the years in maintaining an edge in the highly competitive market, they are now refocusing their efforts in order to remain relevant and viable going forward. It is a difficult but necessary decision for the company as they continue on the path to success.
