The Strategist

Apple restricts hiring new employees

01/18/2019 - 07:25

Apple will hire less employees due to low sales of the iPhone, reports Bloomberg, citing sources familiar with the situation.

iphonedigital via flickr
iphonedigital via flickr
This news was reported to company employees by Tim Cook, the company’s CEO, at a closed meeting. When asked whether Apple would completely stop hiring workers due to the current economic situation, Cook assured that he does not consider this the right solution to the problem.

However, some departments of the company will really stop recruiting new people.

Head of Apple noted that the restrictive measures will not affect everyone - for example, the unit engaged in artificial intelligence, will continue to search for personnel in the usual way. Cook also stressed that effectiveness of departments does not depend on how many people work in them.

According to Bloomberg, in recent years, Apple has really reduced the rate of hiring new employees. Currently, the company employs about 132 thousand people, including employees at its headquarters in Cupertino, employees from other offices, as well as vendors of the official stores of the brand.

It is reported that over the past fiscal year, Apple has hired 9 thousand new team members. A year earlier, this figure was 7 thousand people.

In January of this year, it became known that Apple reduced its financial forecast to $ 84 million for the quarter. Previously, the Apple brand was counting on profits in the amount of $ 89 million to $ 93 million.

This is the first such case in the company over the past 20 years.

Apple’s management believes that low sales of gadgets, especially in China, are to blame for unfavorable forecasts. In addition, fewer owners of iPhones prefer to update their devices every year due to their high cost.

However, Tim Cook urged his employees not to despair and not to consider “external circumstances” as an excuse. "This moment gives us the opportunity to learn new things and take appropriate measures," said Head of the company.

In addition, Cook intends to diversify the economy of Apple, shifting the focus from iPhones to the company's services. In a recent interview, he noted that 2019 will be the year of the launch of new services, which, undoubtedly, will be monetized.

Problems with sales of iPhones, fall in the value of shares, reduction in profit forecasts, and restrictions on hiring new employees appeared in Apple just a few months after the company was the first in the world to reach $ 1 trillion in capitalization. Since then, the brand has lost in value about $ 300 billion.

Meanwhile, in September 2019, Apple will once again release three new iPhone models, despite failures from previous releases.

In this case, one of the smartphones will be the direct successor to the affordable iPhone XR, released last year, sales of which, according to experts, leave much to be desired.

It is reported that this model, like its predecessor, will get an LCD display. The other two iPhones will come with a more expensive OLED screen. According to preliminary data, Apple will completely abandon the LCD in 2020, fully switching to modern displays.

New cameras will become a distinctive feature of the new generation of iPhone.

According to the Wall Street Journal, the premium iPhone will have a triple rear camera, while the other two models will have a double one, just like last year.

In addition, it is possible that Apple will revive its branded players, releasing the seventh generation of the iPod Touch - this is reported by sources among suppliers of parts for the American brand. Last time Apple introduced the new iPod in 2015, “killing” several lines of the legendary player, including the iPod Shuffle and iPod Nano. However, the iPod Touch, which looks like an iPhone, is still on sale.

Specifications of the proposed seventh-generation iPod Touch are not yet known, but it is reported that its cost will remain "low."