Apple’s Tim Cook is ‘a Hall of Fame CEO’ who will avoid layoffs, analyst predicts
Will not be expecting a mass layoff announcement from Apple (AAPL) even with international financial weakness weighing on Apple iphone and Mac sales, suggests Wedbush tech analyst Dan Ives.
That’s in substantial component simply because Apple CEO Tim Cook dinner did not overhire for the duration of the pandemic, not like quite a few of Apple’s rivals.
“Apple under no circumstances hired at the speed of these other tech giants,” Ives reported on Yahoo Finance Stay (video clip higher than). “You’ll see value-reducing all-around the edges, but Cupertino — I mean, they’re tacticians…I think it just shows why Cook dinner is a Hall of Fame CEO. And I consider he’s capable to navigate another condition listed here in terms of not needing to do the layoffs that other tech firms have accomplished.”
Apple’s employee count only rose by about 7% in 2022 compared to 2021, in accordance to firm studies. If Ives’s prediction holds true that Apple will stay away from mass layoffs, it will be the exception in tech.
Salesforce (CRM) mentioned earlier this month it would slash 10% of its workforce and execute find actual estate exits and workplace room reductions. Microsoft (MSFT) followed that information with 10,000 layoffs of its have. And Amazon (AMZN) then revealed 18,000 layoffs.
And the tech layoffs go even further more more than the last various months.
In November 2022, Meta (META) unveiled 10,000 layoffs. Snap (SNAP) canned 20% of its workforce in August, and Robinhood (HOOD) cut ties with 23% of its personnel foundation that very same thirty day period.
The layoff news out of massive tech is the sector’s appear-to-Jesus instant as C-suite execs confront stress from institutional investors to improve margins and cash flow in 2023.
“Headcount reduction is a end result of overhiring for the duration of the pandemic and a slower expansion outlook than initially forecasted,” Jefferies analyst Brent Thill wrote in a be aware to shoppers. “As growth expectations have tapered, providers have recognized they in excess of-hired through the pandemic and need to have to decrease headcount in buy to regain functioning effectiveness with a headcount that matches current demand from customers traits.”
Brian Sozzi is an editor-at-massive and anchor at Yahoo Finance. Abide by Sozzi on Twitter @BrianSozzi and on LinkedIn.
For the most current earnings stories and examination, earnings whispers and expectations, and business earnings information, simply click right here
Study the most current financial and business enterprise news from Yahoo Finance
Down load the Yahoo Finance app for Apple or Android
Comply with Yahoo Finance on Twitter, Fb, Instagram, Flipboard, LinkedIn, and YouTube