The weaker than anticipated demand for iPhones is forcing Apple to turn to several cost-saving measures, and after cutting device production and announcing price cuts, the company now reduces hiring as well.
CEO Tim Cook revealed in a recent meeting with employees that Apple would reduce the pace of bringing in new workers, however emphasizing that key divisions wouldn’t be impacted.
A report from Bloomberg reveals that Tim Cook told employees that the artificial intelligence team is one of the units where hiring wouldn’t be changed, as it plays a key role in the long-term strategy of the company.
Cook insisted the importance of a specific division for Apple isn’t directly related to how many workers are hired every year, obviously trying to play down this latest cost-saving measure that the company comes down to because of declining iPhone sales.
No need for a hiring freeze
According to the cited source, Apple’s workforce has gradually increased over the years. No less than 9,000 new employees joined the company in the latest fiscal year, though a look at the latest 10 years shows that the pace has gradually slowed down over time. Right now, Apple has some 132,000 employees globally.
Tim Cook also explained that Apple wouldn’t embrace a hiring freeze and that the decision to reduce the pace in this regard wouldn’t affect plans for new offices in Austin, Texas.
Apple has become more aggressive in its attempt to deal with slow iPhone sales. The company has reduced production at its suppliers several times in the last few months, as it tried to align inventory with demand. At the same time, it also offered discounts to carriers in some markets, while also increasing the value of trade-ins towards the purchase of new models.
Cook recently blamed the trade war between the US and China and the battery replacement program for the poor sales of the iPhone this year.