Apple Inc. is the latest Big Tech company to tighten its belt, and its stock is falling.
The iPhone maker
anticipating an economic downturn, plans to curtail hiring and spending for some teams next year, according to a Bloomberg report, citing people with knowledge of the matter. The report sent Apple shares down 2% in trading Monday.
News of the targeted cost-cutting edict comes a week before the company is scheduled to announce quarterly results. Despite the trimming, Apple still intends a full product launch schedule in 2023 that includes a mixed-reality headset, according to Bloomberg.
Apple had no comment.
An imperfect storm of inflation, the war in Ukraine, supply-chain slowdowns, and a possible recession has sent some of tech’s biggest players scrambling to slash expenses as they prepare to announce quarterly results.
In recent days, the chief executives of Facebook parent company Meta Platforms Inc.
and Alphabet Inc.’s
Google have informed staff of impending cost reductions and slowing hiring.
Meanwhile, Microsoft Corp.
has imposed a hiring freeze, Netflix Inc.
has announced two layoff rounds of about 450 people, and Amazon.com Inc.
discussed belt tightening during its first-quarter earnings announcement in April.
Netflix is scheduled to report earnings Tuesday, and the rest are slated for next week.
At the same time, Twitter Inc.
Coinbase Global Inc.
and Peloton Interactive Inc.
have also reported layoffs.