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Apple joins the layoff trend with a small corporate retail team restructuring
5 Apr, 2023 / 01:19 am / Apple

Source: http://www.mashable.com

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Mashable: Although the precise number of layoffs is unknown, credible sources indicate that it will be small.

Apple, the tech giant known for its resistance to job cuts, is reportedly eliminating a small number of roles within its corporate retail teams. According to a Bloomberg(via AppleInsider) report, the change is part of a larger "streamlining effort" to enhance the maintenance of Apple stores around the world.

The company is rumored to be laying off members of the development and preservation teams responsible for building and maintaining the company's stores and other properties. Although the precise number of layoffs is unknown, credible sources indicate that it will be small.

Apple has lowered its internal budget and the number of contractors it employs but has avoided layoffs so far. This is a departure for the company, which has so far resisted cutting jobs even as its tech industry competitors have eliminated thousands of positions due to the weak economy and falling consumer spending.

Before the recent COVID-19 pandemic, Apple had laid off about 190 workers from its self-driving car business segment. Yet, other large internet companies like Amazon, Alphabet (Google's parent company), and Meta have all recently announced massive layoffs.

According to Bloomberg's story, a small number of management positions would be cut, and impacted staff may be offered new positions as "individual contributors." Yet, they might not be paid the same.

Despite the layoffs, Apple remains the most valuable business worldwide, with 164,000 employees as of the end of its fiscal year in September. Apple avoided the need to lay off as many employees as its competitors did because it did not significantly grow its employment during the pandemic.

Apple is positioning the change as an effort to improve the efficiency of its business and the quality of its retail store upkeep. During this time of change, affected workers will apparently receive assistance. It remains to be seen if these reductions will have a large effect on the company's entire employment, but they do represent a considerable departure from Apple's previous approach to layoffs.

The revelation follows months of widespread layoffs in many industries as a result of rising interest rates and fears of an impending economic crisis. Meta, the parent company of Facebook, announced last month that it would lay off 10,000 workers in 2022, marking its second round of large layoffs. There were 11,000 layoffs in the first wave alone. These changes were implemented as part of Meta's "year of efficiency" initiative.