Apple to make small number of job cuts in some corporate retail teams

SAN FRANCISCO – Apple is eliminating a small number of roles within its corporate retail teams, according to people with knowledge of the matter, marking its first known internal job cuts since it embarked on a belt-tightening effort in 2022. 

The company is shedding positions in what it calls its development and preservation teams, said the people, who asked not to be identified because the move has not been announced.

Those groups are responsible for the construction and upkeep of Apple retail stores and other facilities around the world.

While the number of positions being eliminated cannot be ascertained and is likely very small, the move represents a new step for the world’s most valuable company, whose peers have been slashing their ranks in the face of a shaky economy and sluggish consumer spending.

Apple is positioning the move as a streamlining effort, rather than layoffs.

It told employees that the changes are designed to improve upkeep of stores globally and that the company will provide support to affected workers.

The iPhone maker has largely held off on corporate layoffs, even as it trims budgets and pares back much of its contractor workforce, including on-contract engineers, recruiters and security guards.

The company previously cut corporate jobs before the pandemic, when it eliminated a couple of hundred members of its self-driving car division.

With the latest move, Apple told employees in those groups that they will have the ability to reapply for a number of roles similar to their prior jobs.

Those who do not take on a new role will get as much as four months of pay, the people said.

A representative for Apple, which is based in Cupertino, California, declined to comment.

Some management roles are also being eliminated.

While those employees could be rehired as so-called individual contributors, they may not have the same compensation, according to the people. In a few instances, some employees are exempt and will keep their jobs without needing to reapply.

Apple had 164,000 employees as at last September, when its last fiscal year ended.

The company did not expand its workforce as quickly as many big technology companies during the pandemic, decreasing the need for major layoffs.

Its peers, including Amazon.com and Alphabet’s Google, have cut tens of thousands of jobs.

BLOOMBERG