According to reports, Apple has fired a large number of people who worked as contract employees in the company last week. The report claims that the layoffs are necessary in order to reduce the scale of hiring and costs of the company. Such an action is considered a rare move for the world’s largest company in terms of market value.
At this stage, about 100 contract employees were adjusted. Recruiters are also responsible for recruiting new employees for Apple. This action shows that the American company is witnessing a decrease in its growth. Apple’s business needs have undergone changes and this is the main reason for the dismissal of employees.
Reports over the past month suggest that Apple is slowing hiring after years of increasing its workforce. At the same time, many companies active in the field of technology have made their employment policies stricter. Tim Cook; The CEO of Apple confirmed during a phone call that although the company continues to invest in some areas; But in relation to spending, he will probably show more caution.
He said to the analysts: “In our opinion, the time has come to invest in the downward cycle. Therefore, we will continue to invest and hire in some areas; But in fact, we will take a more cautious approach.” The Cupertino giant continues to hire full-time employees, and the retrenchment process will not affect all employees who work as contract workers for the company.
Apple slows down hiring; But it’s not the only big tech company to downsize
Currently, the number of Apple employees exceeds 150 thousand people; But this company rarely makes layoffs. However, Apple is not the only major company in the field of technology to reduce the number of its jobs; Because the Meta, Tesla, Microsoft, Amazon and Oracle companies have also adjusted their forces in the midst of the decline in the growth of the technology industry and in order to reduce their costs in recent months.
Apple has announced to the fired contract workers that these people will benefit from their salaries and medical benefits for a period of 2 weeks. Layoffs have been implemented in several Apple branches located in Texas and Singapore. Earlier in 2019, Apple laid off its contract employees in Cork, Ireland. The company hired hundreds of contract workers to improve the product’s performance by listening to Siri’s recorded conversations. However, the project was abandoned due to privacy concerns. Also, in 2015, the American company fired contract employees working in its headquarters campus.
Apple, like many other companies, hires contract employees for technical support and customer service. Additionally, Apple uses contract labor to localize products and improve mapping services. Contract workers often have fewer benefits and protections than full-time employees.