Apple Job Cuts: Apple has decided to lay off employees in its company. The company will make layoffs in its sales team. Apple says that this decision has been taken to further strengthen customer engagement. This will affect fewer employees. Especially those account managers who dealt with big businesses, schools and government offices.
According to CNBC report, from 2022 to 2024, the entire tech industry was in the grip of recession. Meta, Google, Amazon and Microsoft brought thousands of people on the streets. Meta has laid off more than 21,000 employees, Google has laid off 12,000, Amazon has laid off 27,000 and Microsoft has laid off 10,000 employees. But Apple always does hiring cautiously, meaning it does not increase employees rapidly. For this reason, there is no need for cuts in recession.
Apple had made cuts in 2024
Now this retrenchment is also not like before. The last time Apple made some cuts in April 2024 was also strategic. Hundreds of people left the Apple Car project due to its scaling down. That was not cost cutting. Apple never came into the headlines due to AI uncertainty or recession. The news of the company is always on positive things like product launch, Vision Pro, iPhone sales, India expansion.
Company is laying off sales team
According to Bloomberg’s report, the employees affected include account managers handling large corporate clients. Teams working with government agencies such as the US Defense Department and Justice Department were also affected. People who run meetings and demos in Apple’s briefing centers are also in the list. Especially the sales team which was already struggling with the 43-day government shutdown and cuts by DOGE i.e. Department of Government Efficiency.
The company has also given the official reason for this. Apple says that this will simplify the sales team. The second reason is to eliminate duplication in work. The third reason is to strengthen customer engagement. But many employees believe that the real reason is something else. The fourth reason is that Apple now wants to do more sales through indirect channels i.e. resellers. The fifth reason is that this will save the company in the salary and operational expenses of the sales team.
Apple has asked affected employees to find another role in the company by January 20. New sales vacancies have been posted on the job site. If he is not found, he will get a severance package. This decision to cut is shocking because Apple’s revenue growth is going fast. The company is estimated to have sales of $140 billion in the December quarter, which will be a record. Next year a new low-end laptop will be launched, which will target the education and business markets.
There have been some cuts earlier also. A few weeks ago, 20 sales roles were eliminated in Australia and New Zealand. Apple always avoids mass layoffs. CEO Tim Cook even said that layoffs are the last option. But the effect of recession is visible in the entire tech sector. Companies like Verizon, Synopsis, IBM are making aggressive cutbacks. Amazon has cut more than 14,000 jobs and Meta has cut its AI team.
