Apple Reportedly Cutting Back on Hiring After Disappointing iPhone Sales This Holiday Season

Apple

If Apple had any plans on hiring potential employees for several divisions, those ambitions have been kept on hold for the moment. Thanks to the latest report, the technology giant is reportedly cutting back on hiring people for several product divisions thanks to the slow iPhone holiday season. As most of you know, Tim Cook recently announced Apple’s earnings guidance reduction up to 7 percent for the company’s first fiscal quarter of 2019. With revenue estimates of $84 billion, down from $89-93 billion, Apple has been forced to take a backseat momentarily.

Apple CEO Tim Cook Was Asked if Company Would Implement a Hiring Freeze, but Executive Does Not Believe This to Be the Right Course of Action

Tim Cook, according to Bloomberg, made the disclosure to its employees earlier this month. While the company will not witness a hiring freeze, Cook stated that some divisions would see reduced hiring. Specific divisions were not mentioned, and the people who were privy to this information have been asked to keep their identities anonymous.

Cook has yet to determine which divisions would cut back on hiring, but he stated that Apple’s AI team would continue to add new employees at the same pace. He also says that Apple’s hiring rates does not determine the importance of that division, but the company has not commented on when it would be hiring at the same speed as it used to. In 2018, Apple replaced 11 million batteries, forcing several iPhone owners to continue using their older devices, leading to a slowdown of iPhone sales.

As users would no longer have to upgrade to a newer iPhone each year, which several customers saw as planned obsolescence from the company, it would mean keeping their current device without witnessing a hamper in performance or reduction of battery life. Other factors that Cook believes might have influenced slower iPhone sales was the iPhone XR, iPhone XS and iPhone XS Max launch timing, trade tensions between U.S. and China, and fewer carrier subsidies.

Bloomberg reports that internally, Apple executives see this event as room to introduce more innovation to its products, while also encouraging the California-based giant to bolster its services division with third-party integration and an upcoming streaming service. Apple will be announcing first quarter earnings later this month, so we’ll know how the company fared.

The post Apple Reportedly Cutting Back on Hiring After Disappointing iPhone Sales This Holiday Season by Omar Sohail appeared first on Wccftech.



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