We learned last month that Apple would be taking a more cautious approach to hiring new staff, and a new report today confirms that the company is serious about it. Around 100 Apple recruitment contractors have been laid off in the past week.

It follows CEO Tim Cook stating that hiring would continue, but at a slower pace reflecting the “realities” of the environment” …

Background

Those “realities” include high inflation, which is seeing people take a more cautious approach to discretionary spending – and Apple’s products fall into that category for many.

The pandemic also led a sizeable number of people to reevaluate their priorities, with more than usual taking early retirement or reducing their working hours to achieve a better work-life balance.

Additionally, energy costs are rocketing in Europe as a result of sanctions against Russia. Gas piped from Russia has played a substantial role in electricity generation in many European countries, and a combination of sanctions and Russian disruption to supplies has seen household energy costs more than doubling, with even larger rises expected. This will undoubtedly feed through into reduced spending on consumer electronics, among many other things.

Finally, even in areas where demand remains strong, component shortages are hampering Apple’s supply chain, leading to billions of dollars of lost revenue.

Apple recruitment slowing

Bloomberg last month reported that Apple would be slowing the pace of hiring.

Apple has big changes planned for 2023 as the company wants to slow hiring and spending for some teams starting next year. Not all people will be affected, but the Cupertino firm will not backfill roles or add new staff in certain cases.

As reported by Bloomberg‘s Mark Gurman, the plan comes at a time when the company expects to “cope with a potential economic downturn,” according to people with knowledge of the matter.

That was confirmed by Tim Cook during last month’s earnings call.

“We believe in investing through the downturn, and so we’ll continue to hire people and invest in areas, but we are being more deliberate in doing so in recognition of the realities of the environment.” 

Recruitment layoffs

Bloomberg today reports that the decision has led to Apple dispensing with the services of around 100 contract recruiters.

Apple Inc. laid off many of its contract-based recruiters in the past week, part of a push to rein in the tech giant’s hiring and spending, according to people with knowledge of the matter.

About 100 contract workers were let go in a rare move for the world’s most valuable company, said the people, who asked not to be identified because the situation is private. The recruiters were responsible for hiring new employees for Apple, and the cuts underscore that a slowdown is underway at the company.

The report implies that contractors were informed of their dismissal outside of working hours, and were immediately blocked from access to their buildings.

Terminated contractors were told they would receive pay and medical benefits for two weeks. When they were laid off, employee badges were disabled and workers were told they would need to email a list of their belongings if they wanted those items to be returned. 

The report goes on to say that Apple has retained some contract recruiters, and none of its own employees are affected, with in-house recruitment teams remaining at full strength.