Apple Reportedly Plans to Slow Hiring and Spending for Some Teams in 2023

[Karma*Police]

Is that a Rene Russo or Rene Ritchie - Ukraine War. 😄

Anyway, I think we are heading into a recession, so we better hang on tight. I am not putting any more money in my investments right now since there is no growth. It’s just keeps fluctuating.

Make sure you buy whatever Apple products you truly need now and take care of them for the long run. I am even contemplating whether I will bother with my scheduled iPhone upgrade next year. More likely to run my existing iPhone X into the ground.

The recession will hit Apple, there’s no doubt about it, though it’s not yet reflected in their stock price. A lot of people are taking precautions like you; myself included.

White collar jobs are in peril, Apple’s key demographic, and few people need the latest and greatest Apple products. I can easily go another 2 years without buying another Apple product, and my Mac is 6 years old, my iPhone is an 11, and my iPad Pro is almost 4 years old.

 

[webkit]

Also note higher interest rates didn't cause mortgage rates to go up, they went down.

It's been a bit of a mix for mortgages but both are up overall for the year. The average 30-year fixed mortgage rate has gone from 3.45% in January to 5.52% in June.

 

[diego.caraballo]

People speaking about a recession like’s the end of the world. They lasted averagely less than a year in the previous 80-year period. Everything will be OK.

What REALLY gives me anxiety…is Apple downsizing the team in charge of AirPower??? That would be awful news.

 

[siddavis]

If one looks back before the Feds (USA banks) got to be real gluttons with their free money to each other, higher interest rates didn't impact employment. It was the debt swap insurance failure that started all these banks to decrease interest greatly effecting bond yields and pushing people into more risky stock market instead of money with CDs. IMHO this scam period by the feds is well do for a correction of interest rates. Also note higher interest rates didn't cause mortgage rates to go up, they went down.

Sounds like we are pretty much in agreement, but you didn't answer my second question.
First question I was actually referring to investment (which eventually includes in employees).
Employment might be up right now, but we have hard stats that GDP and real income are both down. Plus there is evidence that the jobs numbers include additional jobs people are picking up to try and keep pace.
I just think news like this will become more and more common as companies make cuts because they are impacted (see producer cost index).

 

[Realityck]

I remember visiting Apple Park in San Jose from San Francisco. If I had to do that commute everyday, I would prefer to work from home. Didn’t seem like a cute ride to get there. I understand the benefits of the white buses and we gotta keep in mind getting stuck in traffic during rush hour.

I do feel it for the executives who approved the 5 billion to build the campus. It’s like money wasted. But, that’s life.

Apple has far more leased or bought building complexes than just the original Infinite Loop and new space ship like campus in the South Bay. They are very spread out all over the place in multiple cities here. Thats a 44 mile commute from SF to Cupertino by freeway. Thats a lot further then living in the suburbs close to Apple complexes that have many ways to commute though these areas.

 

[JM]

So long as they keep the programmers well paid and employed to continue fixing bugs: do what you will, Apple.

Feel free to stop work on the Apple Car and the Apple Goggles. I’d appreciate a flawless iOS again. watchOS is mostly perfect and no bugs I’ve found… shoot for that. Give us a WatchOS level of polish, then worry about the extraneous projects.

But. Armchair CEO here… what do I know about driving company growth 🤷‍♂️ If it were up to me, we’d never get brand new fun iOS things. Fix what you already created first.

 

[thadoggfather]

Their SSDs might be slow and fraudulent, but I must say that HQ picture is beautiful.

slow? Yea
fraudulent? It is an ssd and they didn’t advertise speeds

 

[smulji]

The whole tech industry is doing this…
Thanks Gurman, you’re late…

And why Tim Cook photo - is he taking a pay cut???

Who gives a **** what other companies are doing. The last time there was a recession, during Steve Jobs' leadership, Apple did not layoff anyone or cut back on any spending. They actually doubled down on R&D / hiring and invested their way through the recession so they could be ready when economy bounced back. That was Steve Jobs' philosophy which is vastly different than the penny pinching philosophy of Tim Cook.

"We've had one of these before, when the dot-com bubble burst. What I told our company was that we were just going to invest our way through the downturn, that we weren't going to lay off people, that we'd taken a tremendous amount of effort to get them into Apple in the first place -- the last thing we were going to do is lay them off. And we were going to keep funding. In fact we were going to up our R&D budget so that we would be ahead of our competitors when the downturn was over. And that's exactly what we did. And it worked. And that's exactly what we'll do this time." - SJ

Steve Jobs speaks out - On managing through the economic downturn (15) - FORTUNE

 

[Freeangel1]

Apple is doomed . LOL

innovation has died at Apple.

Now its just keep up with the competition.

 

[jz0309]

Who gives a **** what other companies are doing. The last time there was a recession, during Steve Jobs' leadership, Apple did not layoff anyone or cut back on any spending. They actually doubled down on R&D / hiring and invested their way through the recession so they could be ready when economy bounced back. That was Steve Jobs' philosophy which is vastly different than the penny pinching philosophy of Tim Cook.

"We've had one of these before, when the dot-com bubble burst. What I told our company was that we were just going to invest our way through the downturn, that we weren't going to lay off people, that we'd taken a tremendous amount of effort to get them into Apple in the first place -- the last thing we were going to do is lay them off. And we were going to keep funding. In fact we were going to up our R&D budget so that we would be ahead of our competitors when the downturn was over. And that's exactly what we did. And it worked. And that's exactly what we'll do this time." - SJ

Steve Jobs speaks out - On managing through the economic downturn (15) - FORTUNE

and who give a c**p what Steve Jobs did? he's long gone, the world has changed ... back then, Apple themselves were in recovery mode ...

 

[BuddyTronic]

Sure, it's called a recession.

Weird recession - if it even IS a recession.

Is it a recession right now? 2 quarters in which USA has negative GDP - is that the definition of a "recession" I wonder? Did that happen yet?

I think we are experiencing some unusual happenings in the world. True that the Fed can create a recession by raising interest rates, but there is a lot of things that don't make sense like low unemployment, high real estate prices, boom in military spending, consumers spending money.

Personally, I think it's all transient stuff. We are recovering from the Pandemic and there are some bullwhip exaggerations happening. Lots of worriers will be worrying as per usual, but it will all be ok.

I'm mainly coming from an armchair opinion watching and evaluating CNBC stock market opinions

 

[slb]

Apple has done this before, like in 2019 when they missed their revenue forecast.

 

[stevet]

Everyone on the car project is getting their resumes together.

 

[Whathappened]

I bet WFH heavily skews the decision here. And I’m genuinely surprised to see Apple need to “slow spending”. What? With millions of apple cults supporting them unconditionally every year, they somehow run low on cash?

As little as you understand the success of Apple and the satisfaction their customers feel for many years, you don’t understand capitalist economy at all.

 

[SFjohn]

How about Apple execs take a PAY CUT?

If we ware talking about C level people at Apple like Tim Cook, his pay is directly tied to Apples’s stock performance. If Tim Cook doesn’t meet Apple shareholders goals, then his ”pay” goes way, way down…

 

[weup togo]

>some teams will not be... maintaining their headcount next year.
yeahhh, that's called a cost-cutting layoff. btw this is something SJ never did, even when the company was teetering.

 

[msp3]

So, when are all the "diversity" quota hires getting laid off? Or better yet, why not outsource them all?

 

[Abazigal]

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How about Apple execs take a PAY CUT?

I am not sure what the two have in relation.

Apple isn’t cutting anyone’s salary. They just intend to hire less and spend less. So all existing employees still get paid the same.

 

[AF_APPLETALK]

Weird recession - if it even IS a recession.

Is it a recession right now? 2 quarters in which USA has negative GDP - is that the definition of a "recession" I wonder? Did that happen yet?

I think we are experiencing some unusual happenings in the world. True that the Fed can create a recession by raising interest rates, but there is a lot of things that don't make sense like low unemployment, high real estate prices, boom in military spending, consumers spending money.

Personally, I think it's all transient stuff. We are recovering from the Pandemic and there are some bullwhip exaggerations happening. Lots of worriers will be worrying as per usual, but it will all be ok.

I'm mainly coming from an armchair opinion watching and evaluating CNBC stock market opinions

If you want to see everything the establishment media doesn't want you to see, you need to try zerohedge. The things they have be aggregating for months now are finally starting to land, and it's pretty shocking. They were one of the first to laugh at the fed for saying the inflation was "transitory," only to see the fed and Whitehouse do like a 180 on that 6 months later.

The near term will see a drop in consumer demand, causing prices to crumble temporarily and discounts abound. After that, stock (of goods) is going to dry up, and everything is going to become incredibly expensive - crack up boom. And that's aside from the reality that we're looking at mounting problems in energy, transportation and agriculture - none of which are fixed by manipulating interest rates.

 

[jeremysteele]

So yes being stuck at home gets to you after awhile.

I would be amazed if most people did not vastly prefer to be at home. I know I do, after 13+ years of remote work. The key is not letting yourself be "stuck at home" - you need to get out and take advantage of the flexibility. Work at a coffee shop, library, or a beach on the other side of the world.

I can see the value of hybrid schedules, but I will never work in an office full time again. Out of the hundreds of remote coworkers I worked directly with over the years, only 1 of them ever wanted to go back to an office full time. And like many of them, I have turned down some fairly significant offers that would have changed my life, simply because they had no flexibility on it, including at some large tech firms.

Several of them quit jobs at massive companies just to get remote positions. For many people, the flexibility is way more valuable than a fat paycheck, stock options, etc.

These companies need to drastically change the way to do business if they want to keep good talent, because companies who do hire remotely are siphoning them off in a large way right now.

 

[sideshowuniqueuser]

Sure, it's called a recession.

The most bizarre recession I've seen lately.

War in Ukraine causes shortage, and thus rising prices of oil, gas, wheat, etc etc
Rising prices for such essentials puts downward pressure on the world's economies
Reserve banks around the world: oh no, rising prices = inflation = we must raise interest rates to contain inflation.

FFS - so we have a temporary inflation due to a war, which is already damaging the economy, so we are going to pile onto it by raising interest rates and make sure we really kill the economy.

The most utter brain dead reaction I could imagine, from the supposed genius leaders of our financial system. I am bashing my head against the wall in disbelief.

 

[Tozovac]

Ugh more minimalism.

 

[atomic.flip]

Oh if I may. This must be another sign of how perfect Apple is today and how things have never been better. LOL.

 

[atomic.flip]

Why? Would you want to take a pay cut? What is the issue with aligning a budget to the economic conditions? Now of course it is possible Apple management gets compensation that is adjusted for the economy.

Tempering greed. It’s a bigger pandemic than the corona virus ever was. It makes no sense that wealth is distributed as it is with all the people who suffer and struggle each day. Many of whom live in virtual indentured servitude.

Current economic distribution is as atrocious as it was in the 1920s and maybe worse.

 

[scrapesleon]

Oh boy this looking like a Great Depression on the horizon lol