Things are cooking for Apple CEO Tim Cook. Emerging from a slow fiscal quarter due to slowing tech product demand among and a sluggish economy, Apple is continuing to push for cost-cutting measures.
The latest: Eliminating jobs across its Development and Preservation Teams, the corporate retail division that oversees the maintenance and construction of Apple stores. Most employees in these departments are being asked to reapply for similar roles, employees told Bloombergs Mark Gurman. Those who dont will be laid off and receive up to four months of severance pay, a source said, although they could be rehired in a contributor role for less pay.
Its unclear how many roles are being eliminated, sources said, but it impacts those in the U.S., Europe, and Asia-Pacific. Apple did not respond to Fortunes request for comment.
Apple has so far avoided the mass layoffs that have been sweeping the tech industry, largely because it didnt go on a pandemic hiring binge the way that companies like Meta did. Cook has also taken several steps to slash budgets elsewhere to avoid putting full-time corporate workers on the chopping block, such as cutting his own CEOs pay by 40%, delaying bonuses, pausing hiring, and minimizing travel.
Apple is frugal by nature, Credit Suisse Group AG analyst Shannon Cross told Fortune in March, adding that its strategy comes down to the managements stewardship of shareholder dollars and a tight focus on what growth opportunities to invest in.
The move comes after Cook began cracking down on corporate workers turning a blind eye to his hybrid mandate. Platforms Zoë Schiffer tweeted that some teams said failure to comply could lead to termination, though that its not a company-wide policy. Apple is also reportedly tracking its employee attendance through badge records and issuing warnings to those who arent coming in as much, she added.
While Cook is describing the job cuts as a streamlining effort, it seems that hes gradually bringing down the hammer at Apple.
