Apple, Inc. AAPL has so far refrained from any large-scale layoffs, unlike many of its tech peers. In the December quarter alone, Gurman said that Apple is more profitable than any other tech company and earned $30 billion in profits. He said that the company has a reputation for stability and a war chest of $165 billion.
The company is currently having some momentum due to the 20% year-to-date gain for the stock and the imminent launch of a new mixed-reality headset and operating system, according to the Apple writer.
Any possible layoffs at Apple could be more damaging to company morale and public perception than the recent cutbacks at Meta Platforms Inc., including Microsoft Corp., Amazon, Inc. AMZN and Microsoft Corp. MSFT and Alphabet Inc.'s GOOGL GOOG Google.
According to top Apple executives, the most tactical minds in the industry, may see layoffs as evidence that they have committed a strategic blunder or that the global economy is in worse shape than feared, according to Gurman.
Efficiency Focus: Gurman noted that Apple largely avoided hiring binges, even though most other companies went on a hiring spree during the epidemic. He said that there were other factors that were outside the company's control such as spiking interest rates, currency fluctuations, the war in Ukraine and the lingering pandemic.
He said Apple stayed focused on containing costs and making its operations more efficient despite the fact that it began last summer.
What You Need To Know About Apple Stocks?
Initiates To Curb Costs: Gurman said Apple has delayed bonuses for corporate teams that previously received payouts twice a year. Among the measures aimed at cost cuts are:
While some of these moves have been upsetting to Apple's rank and file staff, they are clearly mild compared to what many companies have done, Gurman said.
In the past few months, Apple's top rivals have laid off more than 50,000 people. That is more than half of Apple's corporate workforce. According to the columnist, Apple's steps have worked so far, reflected by December quarter operating expenses coming in below guidance. He said that the growth of those costs will slow down in the current period compared to a year earlier.
Apple closed Friday's session down 0.55% at $155, according to Benzinga Pro data.
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