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Apple CEO Tim Cook announced the news to employees at a plenary meeting earlier this month. According to sources present, it was asked Cook if Apple was planning to set up a hiring freeze, but he said that he did not think that this solution was ideal. Instead, some divisions will see reduced recruitments.
Cook said at the time that Apple had not yet determined which divisions would reduce its hires, but groups such as the AI team will continue to recruit employees. Cook also told employees that the importance of a division for Apple's future was not measured by hiring rates.
The reduction in hiring will not be clear, but the new Apple offices planned in Austin, Texas and Los Angeles, California, will not be affected. In 2018, Apple added 9,000 new employees and, in 2017, 7,000 new employees. According to a recent SEC filing, Apple employs a total of 132,000 people, including its retail sites.
Apple held the plenary meeting shortly after announcing that it was lowering its revenue forecast for the first quarter of 2019 due to a decline in iPhone sales compared to forecasts.
Apple expects a turnover of $ 84 billion for the first quarter of 2019, compared with $ 89 billion to $ 93 billion in November and a decline of $ 4.3 billion compared to the same quarter of the year before.
Cook provided several reasons for this decline, including the launch schedule of iPhone XS, XS Max and XR, the strength of the US dollar, supply constraints, economic weakness and trade tensions in China, and the low number of iPhone upgrades due to the reduction of subsidies of the replacement operators.
according to BloombergInternally, Apple executives have seen the decline in iPhone sales as an opportunity for innovation, and Apple is also considering strengthening its growing service category with third-party integrations and a future streaming TV service.
After the discussion between Cook and employees, some of Apple's vice presidents held separate meetings with vice presidents, senior managers and other managers of their groups to point out that the slowdown in iPhone sales is a opportunity for a new innovation, according to one of the people.
In addition to the lower number of new hires in some divisions, Apple has also reduced its iPhone production by 10% due to the decline in iPhone sales. It also encourages upgrades by lowering prices in China and offering increased take-back values in the United States and America. other countries.
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