Apple Inc Immune to the Layoffs Phenomenon???

The technological industry has had a humongous growth since the start of the pandemic. Companies have adopted newer ways of doing business and enhanced their internal operations by integrating technology and digitizing their existing processes (LaBerge, et. al., 2020). The pandemic has shown us how technology can enable us to conduct businesses even while not in the office. Although businesses can use technology at their advantage, it is accompanied with its own drawbacks if one is careful. One of the significant areas which has adopted newer technologies into its daily processes is the human resource department.

Today, I would like to explore companies from the technology industry and about their layoff spree which has been a great deal in the news for the past couple of months. Companies with strong financial background and great history of being well established for many decades have also succumb to the great layoff phenomenon. Although most of the companies in the technology industry has been a part of the layoff, one of the companies seems to have remained immune to it. Apple – the giant technological firm which brings us our favourite iPhone, iPad, and macs has somehow avoided the loud layoff. It’s surprising how small yet important day to day business decisions can have a tremendous impact on the overall business going forward.

Historically, it has been observed that the overall layoffs remain very low. This number was about 1% of the total workforce which is around 1.4 million people in the year 2022 (Liu, 2022). While this seems to be normal, there’s something dramatic which took place in the year 2022. Suddenly all giant companies started to announce mass layoffs like never seen before. The ecommerce giant – Amazon has laid off around 18,000 of its employees, which is approximately 6% of its total workforce. To withstand though economic conditions and to have a garb better long-term opportunities with a strong cost structure is something that is pushing them to take such hard steps (Q. ai, 2023).

Microsoft on the other hand has been the firm to lay off almost 10,000 people by the end of 2023, which accounts to around 5% of their workforce. Alphabet, the parent company of Google also announced that they would lay off around 12,000 of its employees. In all around 174 tech companies have already laid off around 56,000 people in the month of January which is shocking as it’s the beginning of the year (Q. ai, 2023).

Among all this chaos in the tech industry, Apple Inc seems to have found their calm. The tech giant showed no indication on any layoffs for their employees. They seem to be sailing through the storm of layoffs with much more ease than their competitors. It’s interesting to know despite companies operating in the same industry why are companies facing totally opposite situations.

There are many points of views by different people which tries and justifies as to how Apple Inc is immune to the great layoff. One aspect focuses on the size of the team which grew during the pandemic. A lot of tech giants increased their teams by huge numbers during the pandemic as the baseline was growing rapidly. However, this seems to have backfired for the companies as the growth has slowed down significantly making it difficult for the firms to manage their financials. Apple ensured that it did not go on a hiring spree during the pandemic just because the business expanded at a rapid pace. They hired as and when needed and ensured that their employees become more effective.

The tech giant is trying to cut its costs in every way possible but as CEO Tim Cook says, “I view that as a last resort and, so, mass layoffs is not something that we are talking about at the moment” (Leswing, 2023). The statement from the leader clearly shows how considerate the company is about their employees and the kind of culture which runs throughout the organization. The company also known for using lean management practices which enables them to reduce costs and be more efficient.

Apple is one of the strongest companies when it comes to an organization’s financial position. According to reports, although Apple revenues have decreased around 8%, the company seems to have had a less severe effects of the pandemic. The company has increased its annual revenue by nearly $125 billion from 2020 to 2022 (Tripp, 2023). Considering the macroeconomic environment which had played its part has affected every player in the technological industry.

In my opinion, Apple was cautious enough to make appropriate decisions in challenging times which enabled them to sail through the storm. On the other hand, their strong financial position which they have maintained over the years & their unique cost cutting techniques helped them to stay strong during the times when other players were struggling. Well, Apple is Apple, their massive brand reputation and quality products have dominated the industry. Their strategy has become crucial for their success today and beyond.

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References

LaBerge, L., O’Toole, C., Schneider J., and Smaje K., (2020, October 5). How COVID-19 has pushed companies over the technology tripping point - and transformed business forever. McKinsey & Company. https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-point-and-transformed-business-forever

Liu, J., (2022, November 20). After the great resignation and quite quitting, the era of ‘loud layoffs’ is here. CNBC Make it. https://www.cnbc.com/2022/11/30/after-great-resignation-and-quiet-quitting-loud-layoffs-are-here.html

Q. ai, (2023, January 25). Microsoft and Amazon to Lay off a total of 28,000 employees – why we are seeing some of the highest layoffs in tech history. Forbes. https://www.forbes.com/sites/qai/2023/01/25/microsoft-and-amazon-to-layoff-a-total-of-28000-employeeswhy-we-are-seeing-some-of-the-highest-layoffs-in-tech-history/?sh=7ac1c18e7813

Leswing Kif, (2023, May 4). CEO Tim Cooks says layoffs are the ‘last resort’ and not something Apple is considering right now. CNBC. https://www.cnbc.com/2023/05/04/apple-layoffs-are-a-last-resort-tim-cook-says.html

Tripp Mickle, (2023, Feb 3). Apple revenue and profit down as iPhone sales down. The New York Times. https://www.nytimes.com/2023/02/02/technology/apple-revenue-profit-iphone-sales-slow.html

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