Monday, January 30, 2023

Apple CEO Tim Cook’s slow and steady leadership style may be the needed antidote to massive tech layoffs

Following the layoffs announced Friday morning by Google’s parent company Alphabet, Apple is now the only big tech giant that hasn’t laid off A worsening economy has been looming large over Silicon Valley in recent months.

The combination of rising interest rates and inflation has led to cooling customer demand and shrinking advertising budgets. Amazon, Microsoft and now Google cut hard their templates in previous months, Tech giants hired like crazy during the early years of the pandemic, but are now looking to curtail their spending.

Even then, Apple is in a different and stronger positionaccording to industry analysts business Insider, A position that validates CEO Tim Cook’s pragmatic approach to growth. The iPhone giant’s slower and more measured growth in recent years has it better positioned Cope With a Recession or Recession Without Mass Layoffs,

“I think Apple is still in critical growth mode,” he explains. business Insider Dan Ives, an analyst at Wedbush Securities. “In other words, I wouldn’t expect 7 to 10% layoffs. I think it’s more prudent to cut around the edges and rip off the Band-Aid.”

Between September 2021 and September 2022, The company only hired 10,000 new employeesHas increased its full-time headcount from 154,000 to 164,000, according to an SEC filing. This number is far less than the thousands hired by Amazon, Meta and Google over the same period.

Loop Ventures analyst Gene Munster says, “He’s the most pragmatic of the tech CEOs. I think he’s the most risk-averse, and I think that affects the way he’s doing his hiring.” ”

Apple is going to cut its CEO Tim Cook’s salary by up to 40% in 2023, but he’s fine

Furthermore, Apple’s business model is very different from that of many other tech giants. Its main business is selling phones, tablets and computers, not advertising, so it is not subject to the whims of the advertising industry.

And while Apple owns and operates a number of retail stores around the world, the company’s physical footprint is relatively small compared to Amazon’s vast network of warehouses and fulfillment centers.

as well, The manufacture of its products is subcontracted to third partiesWhich means you don’t immediately feel the impact of changes in the smartphone demand cycle, explains Patrick Moorhead, principal analyst at Moor Insights & Strategy.

“They don’t have their own factories,” says Moorhead. “So from a people perspective, a fluctuation in the number of iPhones and the number of devices, you’re not going to see.”

Finally, another distinguishing feature of Cook’s strategy is that Apple doesn’t have a history of pouring money into risky and eccentric side projects, Google has its famous “moonshot factory”, Amazon and Microsoft have their cutting-edge research teams, and Meta has its own big upside-down dreams. However, Apple doesn’t usually spend a lot of time or money on projects that are not essential to the business,

“He’s a visionary and very careful when it comes to construction companies,” says Dan Ives, an analyst at Weinbush Securities.

That’s not to say that Apple is completely unaffected by the downturn. It is likely that the company will have to cut further, as it has already started doing. It’s likely to cut areas that aren’t growing fast enough or don’t reflect Cook’s top priorities, says Ives.

Ives speculates on the possibility that EThese cuts affect the business of Mac computers, against the background of slow growth in the general PC sector. It also says that voice assistant Siri and its largest voice technology organization could be targeted to cut costs, as are its new healthcare initiatives.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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