Apple’s Tim Cook is ‘a Hall of Fame CEO’ who will avoid layoffs, analyst predicts
Will not assume a mass layoff announcement from Apple (AAPL) in spite of global financial weakness weighing on Apple iphone and Mac gross sales, claims Wedbush tech analyst Dan Ives.
That’s in substantial portion for the reason that Apple CEO Tim Cook dinner did not overhire throughout the pandemic, compared with quite a few of Apple’s rivals.
“Apple by no means employed at the rate of these other tech giants,” Ives claimed on Yahoo Finance Dwell (video clip previously mentioned). “You’ll see price-chopping about the edges, but Cupertino — I necessarily mean, they’re tacticians…I feel it just shows why Cook dinner is a Hall of Fame CEO. And I consider he’s ready to navigate a further predicament listed here in conditions of not needing to do the layoffs that other tech firms have accomplished.”
Apple’s personnel depend only rose by about 7% in 2022 in contrast to 2021, in accordance to firm reports. If Ives’s prediction holds real that Apple will stay away from mass layoffs, it will be the exception in tech.
Salesforce (CRM) claimed earlier this month it would slash 10% of its workforce and execute choose serious estate exits and workplace room reductions. Microsoft (MSFT) adopted that information with 10,000 layoffs of its very own. And Amazon (AMZN) then unveiled 18,000 layoffs.
And the tech layoffs go even even more more than the past numerous months.
In November 2022, Meta (META) unveiled 10,000 layoffs. Snap (SNAP) canned 20% of its workforce in August, and Robinhood (HOOD) slash ties with 23% of its worker base that very same month.
The layoff news out of major tech is the sector’s occur-to-Jesus second as C-suite execs experience force from institutional traders to improve margins and income flow in 2023.
“Headcount reduction is a final result of overhiring throughout the pandemic and a slower growth outlook than at first forecasted,” Jefferies analyst Brent Thill wrote in a notice to shoppers. “As progress anticipations have tapered, businesses have understood they in excess of-employed during the pandemic and need to minimize headcount in get to regain functioning effectiveness with a headcount that matches latest desire tendencies.”
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Comply with Sozzi on Twitter @BrianSozzi and on LinkedIn.
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