Apple CEO Tim Cook assures they won’t fire any employees, says mass layoffs will be a last resort.
The technology industry has been facing challenges in adapting to the evolving economic landscape. Several major players such as Google, Amazon, and Twitter have laid off a significant number of employees to cope with the changing business requirements and economic circumstances. Nevertheless, there is one exception to this trend, which is Apple. The CEO of the company, Tim Cook, has indicated that they have no immediate plans to resort to mass layoffs. According to Cook, such drastic measures are only considered as a last resort for the company.
According to Tim Cook, the CEO of Apple, the company views mass layoffs as a measure of last resort. Although the tech giant is implementing cost-saving measures, it is opting to decrease the rate of recruitment instead of resorting to extensive workforce reductions.
In a recent interview with CNBC, Cook stated that Apple is exercising caution in its hiring process and exploring methods to reduce expenses. Although the company is still hiring, it is doing so at a reduced rate. Cook emphasized that they are taking measures to scrutinize their expenditures and identifying opportunities to cut costs.
Although Apple did release a few workers from its corporate retail division in April, the company is better placed than other tech giants to steer clear of staff reductions since it didn’t engage in as much hiring during the pandemic.
Apple managed to achieve exceptional results during difficult times by recording a record revenue of $94.8 billion in the March quarter, with the sales of iPhones playing a significant role in this achievement, generating $51.3 billion. The Apple Services segment, which includes the App Store, Apple Music, iCloud, and payment services, also set a new record by generating $20.9 billion in revenue. Additionally, the Mac contributed $7.2 billion in revenue, while the iPad and wearables, home, and accessories segments generated $6.7 billion and $8.8 billion in revenue, respectively.
Cook said that Apple’s services lineup has been tremendously successful, with over 975 million paid subscriptions, a new high. Despite the pandemic’s financial hurdles, the company is being prudent in cost-cutting and prioritizing its staff.
According to Cook, the revenue has reached an all-time high across various services, including App Store, Apple Music, iCloud, and payment services. Furthermore, they have expanded their reach to more individuals with their range of services, as they currently have over 975 million paid subscriptions.