Don't expect a mass layoff announcement from Apple AAPL despite global weakness weighing on iPhone and Mac sales, according to Wedbush tech analyst Dan Ives.
Apple CEO Tim Cook didn't overhire during the Pandemic, unlike many of Apple's rivals.
Ives said on Yahoo Finance Live video above You'll see cost-cutting around the edges, but Cupertino are tacticians, and Apple never hired at the pace of these other tech giants. I think it shows why Cook is a Hall of Fame CEO. I think he's able to navigate a situation where he doesn't have to do the layoffs that other tech firms have done. According to company reports, Apple's employee count increased by 7% in 2022 compared to 2021. If Ives' prediction holds true that Apple will avoid mass layoffs, it will be the exception in tech.
Salesforce CRM said earlier this month that it would slash 10% of its workforce and execute select real estate exits and office space reductions. Microsoft MSFT followed that news with 10,000 layoffs of its own. 18,000 layoffs were revealed by Amazon AMZN.
The tech layoffs went even further over the last several months.
In November 2022, Meta META unveiled 10,000 layoffs. In August, Snap SNAP lost 20% of its workforce and Robinhood HOOD cut ties with 23% of its employee base.
The layoff news of big tech is the moment when C-suite executives face pressure from institutional investors to boost margins and cash flow in 2023.
Jefferies analyst Brent Thill wrote in a note to clients that the headcount reduction is a result of overhiring during the pandemic and a slower growth outlook than originally forecast. As growth expectations have tapered, companies have realized that they over-hired during the pandemic and need to reduce headcount in order to regain operating efficiency with a headcount that matches current demand trends. You can follow Sozzi on Twitter and LinkedIn.