Apple has reportedly planned to restrict hiring and budgeting growth for 2023 across some departments as it struggles with the looming economic crisis, experts familiar with the matter told Bloomberg’s Mark Gurman on Monday.
The sources in the report added executives would not apply the priority shift across all departments and the tech giant still aimed to push its mixed reality (MR) headset next year.
News of the cutbacks tumbled shares 2.1 percent, or $147.07, according to figures, with an overall decline of 17 percent to date in 2022. Rival firms such as Amazon, Alphabet, Meta Platforms, Snap, Tesla, Microsoft, and others also face similar problems with hiring and budgeting amid the recession.
Apple declined to comment on the matter, the report added. Financial analyst and Twitter user @MeetKevin, stated the news served as a “lesson for finding red flags” in markets.
This aged well and serves as a lesson for finding red flags. Especially since today Apple is reportedly slowing spending and hiring. https://t.co/R2DAI83iA8
— Meet Kevin (@realMeetKevin) July 18, 2022
The news comes as Apple faces massive supply chain shortages amid COVID-19 lockdowns in China, forcing Apple to limit its product shipments and production output, with the problems forecasted to potentially cost the Cupertino-based firm $8 billion USD in losses for the quarter.
The tech giant had previously acquired 154,000 last year and invested $22 billion USD in R&D, up 17 percent from 2020, the report explained, citing figures from Apple.
Ming-Chi Kuo, Veteran Apple Analyst, revealed in June Apple’s anticipated MR headset would “likely release in January 2023” due to recent setbacks and efforts to perfect the product.
Apple is also currently working on its RealityOS operating system (OS), which leaked iOS 16 beta source code revealing snippets of the findings. The company also trademarked its RealityOS technologies under the US Patent and Trademark Office (USPTO) in early June, sparking interest in the updates.
Meta Platforms recently came under fire for targeting low-performing employees in a bid to reduce costs and avoid excessive expenses as it faced economic and political hurdles amid its Metaverse ambitions.
