To manage the economic headwinds, Apple is also implementing cost-cutting measures like the other tech companies. Bloomberg reports that the tech company has delayed bonuses for select teams that received biannual bonuses to streamline operations.
In early 2022, it was reported that the tech giant had planned to slow hiring and spending for some teams in 2023 to deal with the potential economic downturn. It also reduced the budget and the headcount of select teams and decided not to rehire positions of the departing employees. Late that year, the company stopped hiring for many jobs outside of its Research & Development (R&D) department.
Apple cuts off biannual bonuses and promotions for more corporate divisions
Bloomberg details that Apple typically gave promotions and bonuses once or twice per year depending on the division. However, as part of its cost-cutting efforts, it moved the majority of divisions to a once-a-year promotion and bonuses schedule like services and software engineering.
Now, the company is expanding the same once-a-year promotion and bonuses schedule to staff in operations, corporate retail, and other groups for austerity reasons.
The twice-a-year teams usually saw that happen in April and October. Under the new plan, that group won’t see bonuses or promotions next month, and all divisions will move to an annual schedule — with the payments occurring only in October.
Apple, the world’s most valuable company, began a belt-tightening effort last July, when galloping inflation and recession fears spurred it to take a more cautious stance. The iPhone maker has avoided the kind of mass layoffs underway at most of its tech peers, but it has reduced budgets, cut headcount goals and paused hiring across several divisions.
Furthermore, it is clarified that employees would still receive their full bonuses but in one installment instead of two and the new delay in bonuses is only applicable to engineers and non-managers, not senior executives at the director level and higher.
Having said that Apple’s CEO Tim Cook has taken a voluntary 40% pay cut this year as the company tries to manage costs and avoid mass layoffs during uncertain times. In addition to delaying bonuses, the tech giant has also tightened travel budgets, purchasing, laid off contractors, and HR is monitoring employees’ attendance.