According to the report, people familiar with the matter said that Apple last week fired many recruiters who worked for the company as contract workers, in order to reduce the scale of recruitment and expenditure.
It’s a rare move for the world’s largest company by market capitalization. About 100 contract workers were fired this time, people familiar with the matter said. Recruiters are tasked with recruiting new employees for Apple, a move that shows the company is experiencing a slowdown in growth.
It is reported that Apple told the laid-off employees that the layoffs are to adapt to changes in Apple’s current business needs. It was reported last month that Apple was slowing hiring after years of headcount expansion. At the same time, many tech companies are also tightening their hiring policies.
Apple CEO Tim Cook confirmed on an earnings call that while the company will continue to invest in some areas, it may be more “cautious” about spending. “We think it’s time to invest in a down cycle,” Cook told analysts. “So we’re also hiring and investing in some areas, but realistically, we’ll be more cautious.”
Apple is still hiring full-time recruits, and the layoffs don’t affect all recruiters who work for the company as contract workers. An Apple spokesman declined to comment.
Apple currently employs more than 150,000 people, but it rarely makes layoffs. It’s not the only tech giant to cut jobs, though. Meta Platform, Tesla, Microsoft, Amazon, and Oracle have all laid-off workers in recent months amid slowing growth in tech spending.
Apple told the laid-off contract workers that they would receive two weeks of pay and medical benefits. The work cards of the laid-off employees have all expired. If you want to get back your belongings, you need to send an email to Apple to make a list. The layoffs involve multiple regions, including Apple’s branches in Texas and Singapore.
Apple previously carried out mass layoffs of contract workers in Cork, Ireland in 2019. They hired hundreds of contract workers to improve the product by listening to recorded Siri conversations. But the project was later scaled back due to privacy concerns. The company also laid off contract workers at its headquarters campus in 2015.
Like many companies, Apple hires contract workers for technical support and customer service. They also use contract labor to localize products and improve mapping services. Contract workers often have fewer benefits and protections than full-time employees.