A new report says Apple is planning to slow hiring and cut spending growth in 2023 as it prepares for a potential economic downturn.
The news comes from well-connected insider Mark Gurman at Bloomberg, who says that Apple’s decision “stems from a move to be more careful during uncertain times, though it isn’t a companywide policy.”
That means the changes might not impact all of Apple’s team. Gurman says Apple is planning an “aggressive” 2023 launch schedule including a new Apple VR headset.
A more cautious tone
The report says the “more cautious tone” is notable for Apple because it has done so well during the pandemic and has “weathered past economic turmoil better than many peers.”
Apple’s shares fell sharply to end the day on the back of the news on Monday.
In terms of specifics, Gurman reports that Apple has decided to give some teams a “lower-than-expected” budget for 2023 and that some groups will not be increasing their headcount next year, where previously they might hire 5% to 10% more employees.
The last time Apple undertook such a cutback was in early 2019 after missing its expected iPhone sales targets.
Apple is dealing with a number of global economic issues including inflation, supply chain pressures, and pressure from unions across the U.S. and elsewhere to increase compensation for its employees. Apple will release its Q3 earnings on July 28.
