Apple To Axe Small Number Of Jobs In Its Corporate Retail Teams: Report

According to the report, this is the first known internal job elimination since Apple embarked on a belt-tightening effort last year

Apple has largely held off on corporate layoffs, even as it trims budgets and cuts back much of its contractor workforce, including on-contract engineers, recruiters, and security guards.

US-based tech giant Apple Inc. is cutting down a small number of roles within its corporate retail teams, citing sources privy to the development news agency Reuters reported on Tuesday. According to the report, this is the first known internal job elimination since Apple embarked on a belt-tightening effort last year.

The sources told the news agency the company is shedding positions in what it calls its development and preservation teams. Those groups are responsible for the construction and upkeep of Apple retail stores and other facilities around the world.

While the number of positions being eliminated couldn’t be ascertained and is likely very small, the move represents a new step for the world’s most valuable company, whose peers have been slashing their ranks in the face of a shaky economy and sluggish consumer spending.

The iPhone-maker is positioning the move as a streamlining effort, rather than layoffs. It told employees that the changes were designed to improve upkeep of stores globally and that the company will provide support to affected workers.

Apple has largely held off on corporate layoffs, even as it trims budgets and cuts back much of its contractor workforce, including on-contract engineers, recruiters, and security guards. It previously cut corporate jobs before the pandemic, when it eliminated a couple hundred members of its self-driving car division.

With the latest move, Apple told employees in those groups that they would have the ability to reapply for a number of roles similar to their prior jobs. Those who don’t take a new role will get as much as four months of pay, the sources said.

A representative for Cupertino, California-based firm declined to Reuters request for comment.

Some management roles are also being axed. While those employees could be rehired as so-called individual contributors, they may not have the same compensation, according to the people. In a few instances, some employees are exempt and will keep their jobs without needing to reapply.

Apple had 164,000 employees as of September, when its last fiscal year ended. The company didn’t expand its workforce as quickly as many big tech companies during the pandemic, decreasing the need for major layoffs. Its peers, including Amazon.com Inc. and Alphabet Inc.’s Google, have cut tens of thousands of jobs.