Sources: Apple plans to slow hiring and spending growth in 2023 in some divisions to cope with a potential economic downturn; the changes won't affect all teams
BloombergMark Gurman
Context & Ripple Effects
Apple’s reported division-by-division restraint became a broader belt-tightening sequence: it was followed by cuts to roughly 100 recruiter contractors and then a pause on many roles outside R&D. Later coverage of small corporate retail reductions shows the policy extended beyond recruiting without becoming an across-the-board workforce cut.
The distinction between affected and unaffected teams matters because Apple was preserving room to prioritize selected work while limiting overall cost growth. Related coverage characterizes lean hiring as a way to avoid the larger layoffs seen elsewhere.
First-order effects
Apple divisions subject to the plan face slower hiring and spending growth, while excluded teams retain greater capacity to add staff and fund work.
Recruiting contractors and prospective hires are immediately exposed as hiring demand is constrained; the subsequent contractor cuts show where that pressure first landed.
Second-order effects
A narrower hiring pipeline reduces the need for recruiting support and helps explain Apple’s later hiring pause across many non-R&D, corporate, and standard engineering roles.
Managers gain a stronger incentive to reallocate existing employees and budgets toward protected teams rather than start new work across the organization.
Third-order effects
If sustained, Apple’s approach points to workforce management through selective hiring controls and small targeted reductions rather than broad layoffs, with priority-setting determining which functions keep expanding.
The sequence makes recruiting and corporate support roles the adjustment layer when Apple seeks to preserve investment in selected technical work.
The trend: Large technology companies are increasingly using targeted hiring and spending controls to protect priority teams while containing operating-cost growth.
Apple plans to slow hiring and spending growth next year in some divisions to cope with a potential economic downturn, sources say, in a notably cautious move from the iPhone maker. https://www.bloomberg.com/...
Only one left standing. Every big tech has either slowed hiring or had layoffs except for Amazon. Earnings season is going to be really interesting over the next two weeks. We'll learn once and for all if we're headed towards recession or not. https://stocks.apple.com/...
When the market reverses it is not the end of the world even as some who follow me hate that i didn't say it would reverse at 1:30 when Apple talked. I mean who are these people??
On $AAPL: @markgurman reported that @Apple will slow some hiring “during upcoming uncertain times.” This is not company wide. My takeaway: It's becoming clear that most companies are bracing for a slowdown, which will likely yield cautionary September quarter guidance. https://tw…
In my opinion, this is partially why Apple made some recent cost-cutting moves including the single NAND chip situation on M2 Macs. The other main reason is supply chain issues. It was only a matter of time before Apple announced hiring slowdowns. When will the layoffs come? http…
NO SURPRISE #Apple Plans to Slow Hiring NOT firing “The decision stems from a move to be more careful during uncertain times, though it isn't a companywide policy, said the people” $aapl still planning aggressive 2023 product schedule https://www.bloomberg.com/... via @technology
* APPLE PLANS TO SLOW HIRING AND SPENDING FOR SOME TEAMS IN 2023 * APPLE WON'T BACKFILL ROLES OR ADD NEW STAFF IN CERTAIN CASES * APPLE SPENDING SLOWDOWN NOT COMPANYWIDE, WON'T AFFECT ALL TEAMS $AAPL @business
The latest in a long stream of Silicon Valley cost cutters: @Apple “plans to slow hiring and spending growth next year in some divisions to cope with a potential economic downturn, according to people with knowledge of the matter.” @business
@markgurman Probably also worried about the F2P gaming money printer going slightly less emphatically brrrrr after the DMA (and maybe OAMA) go into effect.