Following a slump in iPhone sales, Cupertino tech giant, Apple plans to reduce hiring for some divisions. Sources close to the matter revealed that the decision came after Apple missed its revenue forecast for the last quarter of 2018.
In a meeting held with the company’s employees, Tim Cook, the chief executive officer of Apple, indicated a reduction in recruitment. However, when Cook was asked if the company would go for hiring freeze, the CEO replied that was not the solution.
Hiring Freeze for Some Divisions in Apple
Cook didn’t mention which divisions wouldn’t receive new workforce. But he said the key divisions like artificial intelligence would continue to flourish in terms of recruitment. Cook believed that hiring rates could not be the yardstick to measure any division’s importance.
From the company data, it is clear that in the last couple of years, Apple has slowed down the process of hiring new employees. As of now, Apple employs a total of 132,000 employees. In the most recent fiscal year, Apple hired around 9000 employees and a year ago, the company recruited about 7000 workers.
Does this hiring freeze stop Apple from setting up new facilities as the company planned earlier? Notably, Apple announced significant expansion plans in Austin, Texas, and Los Angeles areas. Apple is planning to build an original video content team.
For Apple, this is the right time to explore new opportunities and work on innovative products and services. This message has been passed to all the teams after Cook talked to Apple employees. In his memo, Cook also mentioned that he wouldn’t use “external forces” as an excuse as “this moment gives us an opportunity to learn and to take action.”
Surprisingly, a couple of months back, Apple became the first US company to cross the magic figure of $1 trillion in market capitalization. Sadly, the company lost $300 billion in value later on.
The slump in hardware sales must have inspired Apple to shift its focus to Services business as the company forged significant deals with Amazon and Samsung to stream its Apple Music on their devices. During his meeting with employees, Tim Cook discussed services business as the future of Apple.
Apple will continue its efforts to strike more deals to expand its services like Apple Music to more third-party platforms. Apple saw a drop in its revenue following the decline in iPhone sales. But Cook hoped that company’s services business would grow to $10.8 billion in sales during the holiday season.
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