Apple’s Tim Cook is ‘a Hall of Fame CEO’ who will avoid layoffs, analyst predicts
Do not be expecting a mass layoff announcement from Apple (AAPL) inspite of international economic weak point weighing on Iphone and Mac revenue, states Wedbush tech analyst Dan Ives.
That is in huge component simply because Apple CEO Tim Cook didn’t overhire for the duration of the pandemic, in contrast to quite a few of Apple’s rivals.
“Apple under no circumstances employed at the tempo of these other tech giants,” Ives stated on Yahoo Finance Stay (video clip higher than). “You’ll see expense-chopping around the edges, but Cupertino — I necessarily mean, they are tacticians…I imagine it just shows why Cook dinner is a Hall of Fame CEO. And I consider he’s in a position to navigate an additional condition listed here in terms of not needing to do the layoffs that other tech firms have completed.”
Apple’s worker count only rose by about 7{3df20c542cc6b6b63f1c547f8fb389a9f235bb0504150b9df2ff264aa9a6c16c} in 2022 as opposed to 2021, in accordance to business studies. If Ives’s prediction holds legitimate that Apple will prevent mass layoffs, it will be the exception in tech.
Salesforce (CRM) explained earlier this thirty day period it would slash 10{3df20c542cc6b6b63f1c547f8fb389a9f235bb0504150b9df2ff264aa9a6c16c} of its workforce and execute choose authentic estate exits and place of work space reductions. Microsoft (MSFT) followed that information with 10,000 layoffs of its personal. And Amazon (AMZN) then uncovered 18,000 layoffs.
And the tech layoffs go even further more about the very last quite a few months.
In November 2022, Meta (META) unveiled 10,000 layoffs. Snap (SNAP) canned 20{3df20c542cc6b6b63f1c547f8fb389a9f235bb0504150b9df2ff264aa9a6c16c} of its workforce in August, and Robinhood (HOOD) slice ties with 23{3df20c542cc6b6b63f1c547f8fb389a9f235bb0504150b9df2ff264aa9a6c16c} of its worker foundation that exact month.
The layoff information out of major tech is the sector’s appear-to-Jesus instant as C-suite execs face pressure from institutional buyers to boost margins and money move in 2023.
“Headcount reduction is a final result of overhiring during the pandemic and a slower development outlook than originally forecasted,” Jefferies analyst Brent Thill wrote in a be aware to customers. “As expansion anticipations have tapered, organizations have understood they above-hired for the duration of the pandemic and will need to minimize headcount in get to get back running effectiveness with a headcount that matches latest desire traits.”
Brian Sozzi is an editor-at-big and anchor at Yahoo Finance. Stick to Sozzi on Twitter @BrianSozzi and on LinkedIn.
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