During the COVID-19 pandemic, the majority of technology firms saw growth and hiring. But as the situation has stabilized, many have resorted to reducing their workforce to control expenses. Yet, Apple has managed to avoid such cuts so far. A recent article from Bloomberg delves into what Apple did differently in recent years that enabled it to navigate the tough macroeconomic climate without having to lay off employees. Apple is one of the few tech companies that has been able to avoid cutting jobs during the recent economic challenges caused by the pandemic. While many tech companies have hired a lot of employees, Apple only increased its staff by 20%, making it easier to handle the downturn.
Other companies, like Amazon and Alphabet, hired more employees, with growth rates of 100% and 60% respectively, but now they are laying off thousands of workers. On the other hand, Apple slowed down hiring at the end of 2022 but has not laid off any employees. This shows that Apple's careful approach to hiring has helped them weather the tough times without having to resort to layoffs.
Another reason Apple was able to avoid layoffs is due to its efficiency and profitability. Over the last six years, the company has been able to double its revenue per additional headcount. This means that for every new employee hired, the company was able to generate double the revenue. From 2017 to 2019, Apple had revenue per headcount similar to Alphabet and Then in 2020-2022, Apple increased its revenue per additional headcount, which more than doubled to $2.51 million. This is a big achievement compared to other tech companies who saw a drop or only a slight increase in that metric.
The company's efficient business practices and focus on growth opportunities also helped it to stay profitable, even during difficult times. According to Credit Suisse Group AG analyst Shannon Cross, Apple's management is doing a great job at managing shareholder dollars. Despite a dip in iPhone sales during the holiday season, Apple still managed to make $117 billion in revenue and almost $30 billion in profit in just three months.
Read next: Apple Confirms Its iPhone Users Were Never At Risk After Privacy Bug Sparked Concerns
Other companies, like Amazon and Alphabet, hired more employees, with growth rates of 100% and 60% respectively, but now they are laying off thousands of workers. On the other hand, Apple slowed down hiring at the end of 2022 but has not laid off any employees. This shows that Apple's careful approach to hiring has helped them weather the tough times without having to resort to layoffs.
Another reason Apple was able to avoid layoffs is due to its efficiency and profitability. Over the last six years, the company has been able to double its revenue per additional headcount. This means that for every new employee hired, the company was able to generate double the revenue. From 2017 to 2019, Apple had revenue per headcount similar to Alphabet and Then in 2020-2022, Apple increased its revenue per additional headcount, which more than doubled to $2.51 million. This is a big achievement compared to other tech companies who saw a drop or only a slight increase in that metric.
The company's efficient business practices and focus on growth opportunities also helped it to stay profitable, even during difficult times. According to Credit Suisse Group AG analyst Shannon Cross, Apple's management is doing a great job at managing shareholder dollars. Despite a dip in iPhone sales during the holiday season, Apple still managed to make $117 billion in revenue and almost $30 billion in profit in just three months.
Read next: Apple Confirms Its iPhone Users Were Never At Risk After Privacy Bug Sparked Concerns
