Apple Inc. has reportedly paused hiring for non-research and development roles, joining a string of other tech companies that are scaling back their once-robust hiring initiatives due to a stormy economic climate. .
Bloomberg News reported Thursday afternoon that Apple AAPL,
recently enacted a hiring pause that applies to “many jobs” outside of R&D, including positions focused on standard hardware or software engineering, as well as some corporate positions. The current pause mostly does not apply to more futuristic or long-term projects, according to the report.
Apple’s hiring halt is “an escalation” of an earlier company goal of cutting budgets through 2023, Bloomberg said. It would have been enacted before the company’s last earnings report.
The smartphone giant did not immediately respond to a request for comment from CNET. Bloomberg quoted a statement from Apple saying the company is still hiring but that “given the current economic environment” it is “taking a very deliberate approach in some parts of the business.”
The stock fell 0.7% in after-hours trading on Thursday.
Fellow Big Tech player Amazon.com Inc. AMZN,
told employees on Wednesday that it was suspending “additional new hires” to its workforce for several months.
“We face an unusual macro environment and we want to balance our hiring and investing while thinking about this economy,” said Beth Galetti, senior vice president of people experience and technology, in a statement. note posted on the company’s corporate site a day later.
Apple shares have held up better than those of its Big Tech peers over the year, falling 22% so far in 2022, with Amazon shares down 46%.
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Smaller tech companies have taken more drastic measures, with Snap Inc. SNAP,
Shopify Inc. Store,
and Peloton Interactive Inc. PTON,
among those who have announced layoffs in recent months. Private company Stripe joined that camp on Thursday as it announced its own plan to cut 14% of its staff.
Apple generally pleased investors with its latest earnings report, which showed an increase in Mac sales. Executives said demand for the iPhone 14 is strong and the company is working to provide enough phones to meet consumer interest. Since then, however, concerns have arisen about how the evolving COVID-19 situation in China will affect manufacturer Foxconn’s ability to produce devices.