Apple to reduce hiring as a result of slow iPhone sales, report claims
After iPhone sales forced it to revise its fiscal Q1 2019 earnings guidance, a new report by Bloomberg claims that Apple will soon start cutting back on hiring as a direct result of its weaker performance.
According to people familiar with the matter, Apple CEO Tim Cook was asked directly about future hires during an employee meeting earlier this month. To this, Cook replied that a hiring freeze wasn’t the solution to the company’s problems. Instead, certain divisions will reduce hiring for the time being in order to refocus resources on other areas of the business.
As of the meeting, Tim Cook had yet to determine which departments within Apple would be affected. However, he did assure employees of the company that the artificial intelligence team will remain unaffected by the move due to its important role in Apple’s future.
It was also confirmed that the new hiring strategy won’t affect the upcoming campus in Austin or Apple’s plans to expand its Los Angeles presence.
Moving into the future, Tim Cook stressed to employees the importance of its services business. The CEO also states that the situation gives Apple “an opportunity to learn and to take action.” This was reiterated later on in separate meetings held by senior vice presidents with vice presidents, senior directors, and other managers.