Apple has reportedly frozen hiring and delayed bonuses for those who remain in jobs all while suffering unprecedented losses at the executive level.
Apple has lost as many as 12 different executives since the beginning of 2022, a figure that stands apart compared to previous years which saw just one or two leave. Some of those executives reportedly looked after some of the most vital parts of Apple’s business including hardware and software engineering, cloud technology such as iCloud, subscription services like Apple TV Plus, and more.
All of that comes amid news that Apple is seeking to save money where possible, delaying bonus payments that would normally be paid in April 2023 and not replacing people that leave.
Bloomberg’s (opens in new tab) Mark Gurman reports that Apple would normally pay out bonuses to its corporate employees in April and October every year. However, this April’s payment has been canned with the company choosing to move to an annual payout scheme instead.
“In the past, Apple typically doled out bonuses and promotions once or twice per year depending on the division,” Gurman reports. “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.”
Apple is tightening its belt by not replacing some leavers, Gurman adds. And the savings go further — even travel expenses are now under more scrutiny.
“As part of this more cautious approach to spending, Apple has reined in travel budgets and is now requiring senior vice president approval — the highest executive level at the company below the CEO and operating chief — for more budget items,” the report notes.
As Apple gears up to what will surely be the release of the company’s best iPhone to date this September, CEO Tim Cook has also taken a huge pay cut in an attempt to ensure the books remain balanced.