Don't expect a mass layoff announcement from Apple (AAPL) despite global economic weakness weighing on iPhone and Mac sales, says Wedbush tech analyst Dan Ives.
That's in large part because Apple CEO Tim Cook didn't overhire during the pandemic, unlike many of Apple's rivals.
"Apple never hired at the pace of these other tech giants," Ives said on Yahoo Finance Live (video above). "You'll see cost-cutting around the edges, but Cupertino — I mean, they're tacticians…I think it just shows why Cook is a Hall of Fame CEO. And I think he's able to navigate another situation here in terms of not needing to do the layoffs that other tech firms have done."
Apple's employee count only rose by about 7% in 2022 compared to 2021, according to company reports. If Ives's prediction holds true that Apple will avoid mass layoffs, it will be the exception in tech.
Salesforce (CRM) said earlier this month it would slash 10% of its workforce and execute select real estate exits and office space reductions. Microsoft (MSFT) followed that news with 10,000 layoffs of its own. And Amazon (AMZN) then revealed 18,000 layoffs.
And the tech layoffs go even further over the last several 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 employee base that same month.
The layoff news out of big tech is the sector's come-to-Jesus moment as C-suite execs face pressure from institutional investors to boost margins and cash flow in 2023.
"Headcount reduction is a result of overhiring during the pandemic and a slower growth outlook than originally forecasted," Jefferies analyst Brent Thill wrote in a note to clients. "As growth expectations have tapered, companies have realized they over-hired during the pandemic and need to reduce headcount in order to regain operating efficiency with a headcount that matches current demand trends."
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Related Quotes
Wedbush Securities Senior Equity Research Analyst Dan Ives to discuss tech earnings expectations, Apple, consumer sentiment, tech layoffs, and the outlook for tech.
If you’re new to the Tesla family there’s a good chance you’re angry, General Motors capped last year strong and Mazda wants you to know that the Miata will be with us until the end of time, as true love always is. All that and more in The Morning Shift for January 31, 2023.
A preview of Apple's quarterly earnings report as investors watch closely for signs of life from the tech sector.
Airbus and Boeing have set the stage for the next chapter in their titanic rivalry by remodelling two of the world's largest buildings – gutted by changes in air travel. As the last Boeing 747 leaves its factory later on Tuesday, part of the company's historic wide-body plant has been earmarked for production of in-demand smaller jets, matching a change of focus at the home of the defunct Airbus A380. The moves ease doubts over the future of Boeing's under-used Everett plant north of Seattle, the world's largest building by volume, and the empty Jean-Luc Lagardere A380 assembly hall in Toulouse, the world's second largest by usable space.
Yahoo Finance tech editor Dan Howley explains what's behind all the recent tech layoffs and what it means for some of the Nasdaq's biggest companies.
Apple says its decision to ditch Intel gives it a distinct advantage over the rest of the PC industry.
I live in Bay St. Louis and eat king cakes from South Mississippi bakeries every Mardi Gras. I wanted to try some new ones from NOLA this year.
People like complaining about the sound EVs make. They love saying that the futuristic hum of an electric car isn’t as exciting as the sounds that emanate from a gas-powered car. But, that hum is an important safety feature that ensures anyone around can hear an EV coming. Now, some BMWs have stopped humming and are being recalled for being too quiet.
Analyst Ming-Chi Kuo says Apple is developing a folding version of its iPad tablet line. Meanwhile, he's cautious about the outlook for 2023 iPad sales.
President Biden touted his electric vehicle tax credit on Monday with him in an expensive GMC Hummer EV that doesn't even qualify for it as Americans continue to struggle with inflation.
The billionaire is considering the future of payments on Twitter including crypto functionality, according to a report.
Should the priority be a defensive-oriented wing backup? Or a big man?
Given Celtics president Brad Stevens' suggestion that Boston is trying to "fortify" their depth coupled with co-Governor Wyc Grousbeck's comments about the team needing to "muscle up, and … get the job done," such a move does not seem beyond the pale.
Does it make sense for the Celtics to meet the likely significant ask the Austrian center will likely demand? To Scal, yes.
Foods that make up half of the typical British diet are fuelling the risk of cancer, a major study suggests.
(Bloomberg) — SK Hynix Inc. stuck with plans to halve 2023 capital spending after reporting its biggest quarterly loss on record, hammered by a historic chip industry slump. Most Read from BloombergSony Slashes PlayStation VR2 Headset Output After Pre-Orders DisappointPutin’s War in Ukraine Pushes Ex-Soviet States Toward New Allies8,000 Layoffs Don’t Exactly Scream Family ValuesMicrosoft Studio Behind Halo Faces a Reboot on Years of TurmoilNational Archives Releases Records Tied to Trump Classi
Ilze Kitshoff/Sony Pictures Entertainment/TiffThe Hollywood movie The Woman King, released in mid-September, became an immediate box-office success. The triumphs of the Agoodjies, the women warriors of the ancient Kingdom of Dahomey in today’s Benin, west Africa, are as magnificent as the public had anticipated. In this epic historical drama, African women take centre stage. Abomey (the kingdom’s capital) and Ouidah (the main port under its control) are shown from the perspective of Nawi, a novi
Seattle home prices are down 13.5%, while Chicago home prices have only fallen 0.8%.
In this article, we will take a look at the 10 most undervalued tech stocks to buy according to hedge funds. To see more such companies, go directly to 5 Most Undervalued Tech Stocks to Buy According to Hedge Funds. Tech stocks took a beating last year as investors fled growth stocks amid rising inflation […]
Apple (NASDAQ: AAPL) just released a new tool for small businesses, and it could be a gateway to billions in ad revenue. The new Apple Business Connect suite is a set of tools that allows small businesses to update how their location place cards look across Apple apps like Maps, Messages, and Wallet. Apple is giving small businesses a lot of free tools to win them over.
