Apple to cut spending and hiring on select teams in response to economic slowdown

Apple has big changes planned for 2023 as the company wants to slow hiring and spending for some teams starting next year. Not all people will be affected, but the Cupertino firm will not backfill roles or add new staff in certain cases.

As reported by Bloomberg‘s Mark Gurman, the plan comes at a time when the company expects to “cope with a potential economic downturn,” according to people with knowledge of the matter.

The decision stems from a move to be more careful during uncertain times, although it isn’t a companywide policy, said the people, who asked not to be identified because the deliberations are private. The changes won’t affect all teams, and Apple is still planning an aggressive product launch schedule in 2023 that includes a mixed-reality headset, its first major new category since 2015.

This information comes a few days before Apple announces its Q3 earnings. Apple’s Q3 2022 will cover the months of April, May, and June. Last quarter, Apple reported $97.3 billion in revenue – an increase of 9% year over year. The company also reported a profit of $25 billion and earnings per share of $1.52. Except for the iPad, which had significantly impacted sales due to supply constraints, all of Apple’s other segments grew compared to last year.

Aside from supply chain issues, there have also been external factors that had an impact on Apple’s sales. When war broke out in Europe, Apple halted its sales in Russia.

it’s unclear how external factors will continue to impact the company’s sales. As Apple is said to be focusing on its AR and VR initiatives, the company might be cautious about how things will develop in the next few years. The Cupertino firm has also struggled to find the right direction for its car project.

That said, Apple is still expected to keep growing with its services – and expectations for the next generation of iPhones are higher than ever.

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Naveen Kumar

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