Apple’s newest tech company cuts jobs amid economic uncertainty

According to a recent Bloomberg News report, Apple recently laid off about 100 contract workers in its hiring department. This is the latest sign that the tech sector is putting the brakes on new hiring. Facebook’s parent company, Meta, has made similar announcements this year, along with Amazon (Marketplace’s underwriter), Alphabet, Microsoft and others.

Until this year, tech companies had a lot of hiring activity. One reason is that the pandemic has created a lot of demand for the company’s products and services.

“The bulls got stronger in tech during the pandemic,” said Dan Ives, managing director of Wedbush Securities. [perspective], everyone is sitting at home streaming, software and cloud. “

But that’s starting to change, depending on the type of technology company you’re targeting, says JP Gownder of Forrester Research.

“Some companies are legitimately having performance issues, while others are just being a little cautious and slowing things down.”

Netflix, for example, is grappling with new competition, Gownder said. Laid off about 450 employees. Other companies are slowing hiring because they worry about where the economy is headed.

“In an environment of economic uncertainty, even large companies say, ‘This particular part of our business isn’t doing well, let’s scale it back. If the economy slows down, we expect it to be even less successful.’ I would say,” said Gownder.

Tech companies may also be hoping that other companies will slow down their spending. Ad revenue, says Carolina Milanesi, a technology analyst at Creative Strategies.

“Advertising is usually one of the things that companies pull out of on any social media platform or content platform,” she says.

After a boom in hiring in the tech industry over the past few years, Milanese said we should expect that pace to slow.

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