Apple has followed the likes of Meta, Tesla, and Twitter in slowing down its hiring plans. Apple has not announced why it is making these changes, but other technology giants have noted that the economy and looming economic instability have been key factors in the decisions.
Bloomberg reported that Apple, formerly the most valuable company in the world, intends to make the change to its hiring strategy from the beginning of 2023.
Apple’s current 154,000 full-time employees won’t be impacted, and some divisions will continue to hire at a slower rate than previously projected.
Despite this pivot in hiring strategy, the company still intends to strive forward with its highly anticipated product launches in 2023, including Apple’s long-rumored mixed-reality headset.
Dissecting the economy and Apple’s reasoning for changing its hiring strategy, Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh, told Reuters: “Apple’s move reflects a broader slowdown in investing in new things, new companies, and new products. It signifies that inflation is an issue for these companies.”
Forrest’s logic is hard to argue with as inflation has hit the vast majority of businesses in recent months, and smartphone shipments are slowing as people are more cautious about spending.
With that said, it is worth noting that Apple is far from danger, the company still owns a 17% share of the phone market.
The impact of Apple’s announcement
On the back of the announcement, Apple’s US stocks reversed sharply lower Monday, and fears of a possible recession are mounting.
While many will feel safe having a career within a market leader, the move by Apple illustrates that very few businesses are recession-proof and that the job market may be shrinking.
As a result of a closing job market, the freedom that was exercised in the ‘Great Resignation‘, which saw millions reconsider their working options and what they wanted from employment, may be slipping away.
In fact, recruitment company Insight Global found that 78% of US workers are fearful about keeping their jobs if a recession does hit. On top of that, 87% of managers claimed that they would likely cut staff if a recession becomes a reality.
The world of work is changing once again. While it is unclear what the future may bring, it is clear that concerns extend from the workforce to the titans of industry.
UNLEASH has reached out to Apple for comment but has not yet received a response.
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