vUnlike Google and Amazon, Apple Does Not Cut Jobs because it Did Not Overhire

Since Apple Inc. hired more efficiently in the first place, it isn't under as much pressure to cut jobs as its competitors during the current slowdown.

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While other big tech firms added more employees during the pandemic, Apple added fewer. Moreover, Trade Algo data show the company generates more revenue per new hire than most of its competitors.

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The Pandemic Made Apple More Cautious About Hiring

Employees added from pre-Covid level to post-Covid level during the last three years. It's paying off now that you took a more cautious approach. In spite of Apple's freeze on hiring and cutting spending - particularly outside research and development - it hasn't yet been forced to retrench like Amazon.com and Google.

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“The Apple management clearly read the pandemic signals correctly as opposed to other technology companies," said Trade Algo analysts.

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This week, the company hired its first chief people officer in an effort to shore up its human resources. As retail chief, Deirdre O'Brien also handled HR duties.

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While the pandemic raged, many tech companies hired too many people, betting that lifestyle changes would bring a bigger windfall, including remote work, e-commerce, and video games. The aftermath is now being dealt with. In response to Covid-19 lockdowns, Zoom Technologies Inc. announced this week that it would be cutting 15% of its workforce.

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Apple, on the other hand, took a more cautious approach. Over the same period, Alphabet's headcount increased by 60%, while Amazon's more than doubled. There were roughly 30,000 layoffs announced by these two companies.

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During the pandemic years, Apple also generated much higher revenue per additional employee than it did during the prior three years. Comparatively, that's a sharp contrast with most of its competitors in the technology sector

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During pandemic years, Apple becomes more efficient than its peers 

However, Apple's advantage over its competitors cannot be fully explained by headcount. Another indication of the company's efficiency is that it generates some of the highest sales per square foot. 

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Analysts at Trade Algo agree that Apple's frugality comes from management's stewardship of shareholders' dollars and a focus on investing in growth opportunities.