Amidst the current economic uncertainties impacting the tech industry, Apple is also encountering challenges. According to a new report from Bloomberg, Apple has implemented changes in the budget as it scrutinizes and reviews expenses and spending.
According to the report, Apple is delaying bonuses for some teams, freezing hiring across more departments, and reducing travel budgets for many teams. The company is also requiring SVP’s approval for more budget items and closely monitoring how often employees come into the office versus working remotely.
In addition to these changes to its expenses, Apple is also making changes to the bonus schedule. Previously, Apple used to distribute bonuses and promotions once or twice a year, depending on the division, with payments occurring in April and October. However, the company is now transitioning to an annual bonus schedule, where bonuses will only be paid out in October for all teams.
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.
Despite this shift, employees will still receive their full bonuses. 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 has also decided to expand its hiring freeze to encompass additional roles. Unlike many tech companies, Apple has avoided layoffs within the company. While tech giants like Amazon, Google, and Meta have laid off thousands of employees recently, Apple has looked at other ways to cut costs amid economic uncertainty.
Source: Bloomberg
