Apple planning to cut hiring due to slipping iPhone sales

Apple is looking to cut back on hiring due to slipping iPhone sales, reports Bloomberg. Citing sources familiar with the matter, the outlet’s Mark Gurman says the company plans to reduce hiring for some divisions following weaker-than-anticipated handset sales during the recent quarter.

Tim Cook, Apple’s chief executive officer, made the disclosure to employees earlier this month in a meeting the day after he penned a letter to investors about the company’s recent struggles, particularly in China. During the meeting, Cook was asked if the company would impose a hiring freeze in response. He said he didn’t believe that was the solution. Instead, Cook said some divisions would reduce hiring, according to the people, who asked not to be identified discussing private matters.

Gurman adds that Cook hasn’t yet determined which divisions will cut back on hiring, but he emphasized that a division’s importance isn’t measured by hiring rates. It sounds like the reduction won’t hit key teams like those in AI, or affect the opening of the company’s new Austin, TX offices.

After more than a decade of explosive growth following hit products like the iPod and iPhone, Apple finds itself in a weird spot right now. Earlier this month the company announced it was forced to cut its projected revenue for the holiday quarter by at least $5 billion on lower-than-expected sales.

Source: Bloomberg