Since it hired more effectively in the first place, Apple is under less pressure than its peers to reduce employment during the present slump.

Since it hired more effectively in the first place, Apple is under less pressure than other tech companies to reduce employment during the present slump.

Apple hired fewer people during the pandemic-driven employment boom in the business than other significant tech companies. The business also outperformed its competitors in terms of revenue per new job, according to data gathered by Bloomberg.

Now, the more conservative strategy is beginning to pay off. Apple has restricted expenditure, notably on outside research and development, and has halted employment in some areas, but it hasn't yet adopted the massive layoff strategies being implemented by Alphabet, Amazon, Meta, and other tech giants.

This Monday, the business disclosed intentions to strengthen its human resources by appointing its first chief people officer. Deirdre O'Brien, head of retail, had been in charge of HR in a dual capacity.

Many IT businesses acknowledge that they overhired during the epidemic on the mistaken belief that lifestyle changes, such as remote work, more e-commerce, and video game playing, would result in greater financial gains. They are currently dealing with the fallout. One of the major winners of the Covid-19 lockdowns, Zoom Technologies Inc., recently revealed last week that it was laying off 15% of its workforce.

Apple, though, used greater caution. Compared to a growth of 60% at Alphabet and a nearly doubling at Amazon, its staff expanded by only 20% between 2020 and 2022. These two businesses later announced playoffs for a combined total of about 30,000 people.

Additionally, Apple made far more money per extra employee during the pandemic years than it did during the preceding three-year period. That contrasts sharply to most of its technological competitors.

However, personnel alone cannot completely account for Apple's competitive advantage. Additionally, the firm has some of the greatest revenues per square foot, demonstrating that its effectiveness extends beyond employment practices.

Apple is thrifty by nature, according to Shannon Cross, an analyst at Credit Suisse Group AG. She stated, “It all boils down to how well management manages shareholder funds and keeps a laser-like focus on the best growth possibilities to invest in”.

(Bloomberg.com, Forbes.com)