Tech Giant Apple in a cost-cutting method is reportedly postponing the bonuses for some of its corporate divisions. Additionally, the firm will keep the vacant positions open and will stop recruiting any new employees. Although the plan hasn’t been officially announced in public domain, it will lower the regularity of bonuses for some corporate Apple employees.
As per Bloomberg, in this new cost-cutting measure, the company will not be offering any new bonuses or promotions in the coming month. All verticals of the company will receive bonuses only in the month of October, annually. However, employees working in corporate retail and other groups are still on outgoing biannual plan.
Apple, unlike its other peers has not done any mass layoffs, although as a cost-cutting method it has lowered budgets, stopped hiring and cut headcount goals. The senior officials will not be affected by the bonus cut as it is applicable for engineers and other non-managers as well as mid-level managers.
Apple’s chief executive officer (CEO) Tim Cook, addressed its shareholders last week saying, “We’re being very prudent and thoughtful on spending and we continue to be very deliberate when it comes to hiring.” He also added that the holiday quarter operating expenses were lower than expected and grew more slowly compared to past.
Tim Cook’s paycheck has also been affected as the company announced that the pay scale for this year would tumble by more than 40 per cent to about $49 million. Apple is also keeping an eye on the employees who are not meeting the requirement of working from office three times per week.