Apple shares slid in early Monday afternoon trading after Bloomberg reported The technology giant plans to scale back hiring and spending growth in some areas of its business due to concerns about the current economic climate, marking the latest Silicon Valley company to recalibrate its hiring plans.
The cost-saving maneuvers aren’t companywide and will only affect certain teams, Bloomberg reportedsitting people familiar with the situation.
Apple shares fell nearly 2% to $147.39 within 20 minutes of the report’s publication, erasing the stock’s modest gains earlier in the day.
Apple did not immediately respond to a request for comment.
The reported hiring slowdown "does not change our bullish view of the iPhone 14 product cycle into the year end despite the macro," Wedbush analyst Dan Ives wrote in emailed comments to Forbes, referring to Apple's expected unveiling of the next iPhone model later this year. "Apple is being proactive given the economic storm clouds."
Apple is merely the latest Silicon Valley firm to respond to escalating recession fears by reevaluating its workforce. Tesla CEO Elon Musk wrote in an email to executives last month the automaker should cut 10% of its workforce and freeze hiring because of his “super bad feeling” about the economy,” while Google and Meta have both unveiled hiring slowdowns of their own. Several major companies have conducted layoffs due to the economic environment, including cryptocurrency firms Coinbase and OpenSea and real estate brokers Compass and Redfin.
Recession Fears Fuel Layoffs: Here Are The Major US Ones So Far (Forbes,
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