Apple CEO Tim Cook rules out layoffs despite tough economic climate
While major technology companies such as Alphabet, Meta, Microsoft, and Amazon have laid off thousands of workers this year, CEO Tim Cook informed CNBC on Thursday that Apple has no plans for significant layoffs. Cook's statement is in stark contrast to the actions of other big tech players.
“I view that as a last resort and, so, mass layoffs is not something that we’re talking about at this moment,” Cook told CNBC’s Steve Kovach.
Although not completely dismissing the prospect of job cuts, Cook clarified that Apple has no plans for such an action and would only consider it as a final option. The company is, however, reducing expenses and has decreased its pace of recruitment, Cook added.
“We’re continuing to be extremely prudent on hiring. We’re continuing to hire, just at a lower clip level than we were before. And we’re doing all the right things of challenging the things that we spend, and we’re just finding a few more ways to save on it,” Cook said.
In comparison to its competitors, Apple reduced its hiring rate significantly during the pandemic. This may be one of the factors that could potentially make the company less inclined to lay off workers in response to macroeconomic circumstances.
Despite the pandemic, Apple has maintained a high level of profitability. According to its earnings report for the March quarter released on Thursday, the company generated a total revenue of $95 billion and a net income of $24 billion.