Apple reportedly plans to join other tech giants in slowing hiring to prepare for a potential recession, while Goldman Sachs is reinstating its annual year-end job cuts aft
Apple reportedly plans to join other tech giants in slowing hiring to prepare for a potential recession. Apple CEO Tim Cook is seen above
Apple stock reversed gains and turned negative following the report on Monday
As of its last annual report, the Cupertino, California-based company had about 154,000 full-time equivalent employees.
The Bloomberg report said the changes would not affect all teams and that Apple was still planning an aggressive product launch schedule in 2023 that includes a mixed-reality headset, its first major new category since 2015.
‘Apple’s move reflects a broader slowdown in investing in new things, new companies and new products,’ Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh, told Reuters. ‘It signifies that inflation is an issue for these companies.’
Meanwhile, Goldman Sachs warned on Monday that it may slow hiring and cut expenses as the economic outlook worsens.
The Wall Street titan reported a 48 percent slump in quarterly profit — which nevertheless beat analyst forecasts due to gains in fixed-income and commodities trading.
Goldman Sachs CEO David Solomon said the market environment has become more ‘complicated’ due to a combination of economic conditions and geopolitics, citing the war in Ukraine.
‘We see inflation deeply entrenched in the economy,’ he said. ‘And what’s unusual about this particular period is that both demand and supply are being affected by exogenous events, namely the pandemic and the war.’
Goldman Sachs CEO David Solomon said that the bank will ‘continue to hire, but the pace of the hiring is going to slow’
Inflation reached a 40-year high of 9.1 percent last month
In an interview on Tuesday with , Solomon said that the bank will ‘continue to hire, but the pace of the hiring is going to slow.’
‘There’s no question given the inflation that we have in our economy, you’re seeing a tightening of economic conditions, and there is certainly a chance that can lead to recession,’ he said.
Goldman CFO Denis Coleman told analysts on an earnings call: ‘Given the challenging operating environment, we are closely re-examining all of our forward spending and investment plans to ensure the best use of our resources.’
‘Specifically, we have made the decision to slow hiring velocity and reduce certain professional fees going forward, though these actions will take some time to be reflected in our results.’
The bank will also reinstate its annual job cuts for employees at the end of the year, a process it had suspended during the pandemic, he said.
Typically, Goldman cuts the bottom 5 percent of performers every year, but had suspended the practice as it struggled to attract talent, bokep gay terbaru despite offering entry-level employees straight out of school a salary of more than $100,000.
The restoration of annual sackings for under-performers was the strongest signal yet that Wall Street banks may consider potential job cuts as outlook for dealmaking turns challenging.
Across the board, Wall Street had eased up on hiring after a recruiting frenzy last year.
It follows moves over the past several weeks from many top tech companies to cut costs and scale back hiring.
Last week, Google parent Alphabet said it would slow the pace of hiring for the rest of the year.
Alphabet CEO Sundar Pichai told employees that the company will be ‘slowing down the pace of hiring for the rest of the year’
‘If I had to bet, I’d say that this might be one of the worst downturns that we’ve seen in recent history,’ Mark Zuckerberg told employees during a companywide call in late June