Apple delays bonuses, limits hiring in cost-cutting efforts, joining Big Tech peers in streamlining operations
- Full bonuses will be paid in one payment instead of two to engineers and other non-managers as well as mid-level managers
- Apple is facing a sales slowdown, with revenue down a steeper-than-expected 5 per cent in the holiday quarter, adding pressure to keep operations lean
The shift will reduce the frequency of bonuses for a portion of Apple’s corporate workforce, said the people, who asked not to be identified because the plan has not been announced publicly. Separately, the company is limiting hiring for more jobs and leaving additional positions open when employees depart.
In the past, Apple typically doled out bonuses and promotions once or twice per year depending on the division. The twice-a-year teams usually saw that happen in April and October. Under the new plan, that group won’t see bonuses or promotions next month, and all divisions will move to an annual schedule – with the payments occurring only in October.
The majority of Apple’s divisions had already moved to a once-a-year schedule for bonuses and promotions, including software engineering and services, but staff in operations, corporate retail and other groups had still been on the outgoing biannual plan.
Apple, the world’s most valuable company, began a belt-tightening effort last July, when galloping inflation and recession fears spurred it to take a more cautious stance. The iPhone maker has avoided the kind of mass lay-offs under way at most of its tech peers, but it has reduced budgets, cut headcount goals and paused hiring across several divisions.
Employees are still slated to receive their full bonuses, just in one instalment rather than two. Even so, the change could come as a blow to staff, especially because Apple has not provided much advance notice in some cases. Workers often count on such bonuses for their personal budgeting. The move could also potentially help retain employees who may have planned to leave the company after receiving the April payout.
The move applies to engineers and other non-managers as well as mid-level managers, but not senior employees at the director level and above. Apple’s highest-ranking employees typically see their bonuses paid quarterly. A spokesman for the Cupertino, California-based company declined to comment.
