Apple Inc. has reportedly paused hiring for non-research and development roles, joining a number of other tech companies scaling back their once-robust hiring initiatives due to a stormy economic climate.
Bloomberg News reported Thursday afternoon that Apple AAPL,
recently enacted a hiring freeze that applies to “many jobs” outside of R&D, including positions focused on standard hardware or software engineering, as well as some corporate positions. The current pause mostly does not apply to more futuristic or long-term projects, according to the report.
Apple’s hiring freeze is “an escalation” of an earlier company goal to cut budgets through 2023, Bloomberg said. It would have been adopted before the company’s last earnings report.
The smartphone giant did not immediately respond to a request for comment from CNET. Bloomberg cited a statement from Apple saying the company is still hiring, but that “given the current economic environment” it is taking a very deliberate approach in some parts of the company.
The stock was down 0.7% in after-hours trading on Thursday.
Fellow Big Tech Player Amazon.com Inc. AMZN,
told employees Wednesday that it was suspending “further new hires” to its workforce for several months.
“We are facing an unusual macro environment, and we want to balance our hiring and investments while thinking about this economy,” Beth Galetti, senior vice president of people experience and technology, said in a statement. .
Apple shares have outperformed their Big Tech peers over the year, down 22% so far in 2022, while Amazon shares are down 46%.
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Smaller tech companies have taken more drastic measures with Snap Inc. SNAP,
Shopify Inc. Store,
and Peloton Interactive Inc. PTON,
among those who have announced layoffs in recent months. Privately held company Stripe joined this camp on Thursday when it announced its own plan to cut 14% of its staff.
Apple generally pleased investors with its latest earnings report, which showed an increase in Mac sales. Executives said demand for the iPhone 14 is high and the company is working to supply enough phones to meet consumer interest. Since then, however, concerns have arisen about how the evolving COVID-19 situation in China will affect manufacturer Foxconn’s ability to produce devices.