Apple reportedly plans to slow hiring amid recession fears

Apple stock fell in the early afternoon on Monday after Bloomberg reported that the tech giant planned to cut hiring and spending growth in some areas of its business due to concerns over the economic climate. current. This marks the latest Silicon Valley company to reevaluate its recruitment plans.

Highlights

  • The cost-cutting maneuvers are not company-wide and will only affect certain teams, Bloomberg reported, citing people familiar with the situation.
  • Apple shares fell nearly 2% to $147.39 (€143.96) within 20 minutes of the report’s release, wiping out modest gains earlier in the day.
  • Apple did not immediately respond to a request for comment.

Contra

The reported slowdown in hiring “does not change our bullish view of the iPhone 14 product cycle at year-end despite the macro,” Wedbush analyst Dan Ives wrote in comments sent by email to Forbes, referring to Apple’s planned unveiling of the next iPhone model later this year. “Apple is proactive given the economic storm clouds. »

Key context

Apple is just the latest Silicon Valley company to respond to escalating recession fears by reassessing its workforce. Last month, Tesla CEO Elon Musk wrote in an email to his executives that the automaker should cut 10% of its workforce and freeze hiring due to its “very bad feeling about the economy”. , while Google and Meta both announced a slowdown in hiring. Several major companies have made layoffs due to economic conditions, including cryptocurrency firms Coinbase and OpenSea and real estate brokerages Compass and Redfin.

Article translated from Forbes US – Author: Derek Saul

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