New Delhi: Apple, the only big tech company that has avoided mass layoffs to date, has reportedly begun laying off third-party contractors. The iPhone maker has quietly begun cutting ties with hundreds of contractors, the New York Post reported, citing people with direct knowledge of the matter.
“Rather than waiting for contracts that typically expire every 12 to 15 months, Apple is firing contractors outright,” the report said, citing sources. Apple did not comment on the report. ,Also Read: SBI Vs HDFC Vs ICICI Vs PNB Vs BOB: Comparison Of Minimum Balance And Penalty Charges In Savings Accounts,
According to the report, removing contractors is a cost-cutting move. The company hasn’t disclosed the size of its contractor workforce, but reports suggest the number is in the thousands. ,ALSO READ: Twitter closes Delhi, Mumbai offices, only three employees running company’s India operations,
Apple CEO Tim Cook called the layoffs at the company “sort of a last resort”, adding that “you can never say never”. Cook told The Wall Street Journal that Apple is very tightly managing costs.
“We want to manage costs in other ways to the extent that we can,” he was quoted as saying. Apple faced supply chain disruptions in October and November as China grappled with a surge of Covid and protests broke out at its main supplier Foxconn’s main factory in the country.
Cook said that COVID-related challenges “significantly impacted iPhone 14 Pro and iPhone 14 Pro Max supply and lasted through most of December”. He added that as a result of a challenging environment, “our revenue was down 5 percent year over year”.
Apple didn’t overhire during the pandemic, according to Wedbush tech analyst Dan Ives. Apple’s workforce is expected to increase by about 7 percent in 2022 compared to 2021. Cook has already taken a massive $35 million pay cut, or more than 40 percent of his compensation.