Apple expands hiring freeze and stalls bonuses as part of cost-cutting effort - Bloomberg

© Reuters.

By Sam Boughedda

Apple (NASDAQ:AAPL) is stalling bonuses for some of its corporate divisions and expanding a cost-cutting effort, Bloomberg reported on Tuesday.

Citing sources, the publication states that the tech giant is joining its Silicon Valley counterparts in trying to streamline operations during the current uncertain macroeconomic environment.

As well as reducing the frequency of bonuses for some of its corporate employees, Apple is also said to be freezing hiring for more jobs and leaving additional positions open when employees depart.

The employees are still expected to receive their full bonuses, but in one installment rather than two, with the move said to apply to engineers, other non-managers, and mid-level managers, but not senior employees at the director level and above.

Bloomberg explains that, depending on the division, Apple usually pays out bonuses and promotions once or twice per year, with the twice-per-year payments generally occurring in April and October. However, the new plan will result in employees not seeing bonuses or promotions next month, with all divisions moving to payments annually in October.

The report adds that most of Apple's employees have already moved to the annual schedule.

While Apple has managed to avoid mass layoffs, Bloomberg states that it has reduced budgets, cut headcount goals, and frozen hiring in several divisions.