Apple shares fell on Monday (-1.86%) as Bloomberg reported that the tech giant plans to reduce hiring and spending growth in some areas of its business amid concerns about the current economic climate, signaling the latest Silicon Valley company to readjust its hiring plans.
The cost-saving moves are not company-wide and will affect only certain areas, Bloomberg reported, citing people with knowledge of the matter.
Apple shares fell nearly 2% to $147.39 in 20 minutes after the report, erasing small gains the company’s stock had made earlier.
Apple did not immediately respond to a request for comment.
The alleged hiring slowdown “does not change our bullish view of the iPhone 14 product cycle through the end of the year, despite the macro data,” Wedbush analyst Dan Ives told Forbes, referring to the expected launch of the next iPhone model by Apple later this year. “Apple is being proactive given the economic climate.”
Apple is the latest Silicon Valley company to respond to escalating recession fears by reassessing its workforce. Tesla CEO Elon Musk wrote in an email to company executives last month that the company would have to cut 10% of its workforce and freeze hiring because of his “super bad feeling about the economy “, while Google and Meta have both reported hiring cuts of their own. Several major companies have made layoffs due to the economic environment, including cryptocurrency companies Coinbase and OpenSea and real estate companies Compass and Redfin.
Source: Capital
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