Apple Inc., renowned creator and distributor of consumer electronics, has reportedly initiated a small number of corporate layoffs, according to a report released by the Wall Street Journal. The layoffs come as part of a broader restructuring of Apple’s operations following a period of significant investment and diversification into the wide range of products and services the company offers.
This restructuring was primarily driven by a dip in profits and a decrease in unit sales of their flagship product, the iPhone. Apple has become increasingly reliant on this mobile device, and Apple’s market share of the worldwide smartphone market has been declining in recent quarters. This has influenced business decisions as the company seeks to streamline operations and decrease costs.
The Wall Street Journal reported that Apple informed employees of a small number of layoffs in the company’s hardware engineering and business units. These layoffs affected fewer than 200 people and primarily consisted of staff in positions that had become redundant due to Apple’s shift in operations and management.
Following the report, Apple issued a statement declaring that the layoff would not affect its other operations. The company also stated that it remains dedicated to its employees and to providing excellent customer service and support. Apple claims that it will honor all obligations it has to its employees with regard to severance and benefit packages in compliance with US labor laws.
As Apple continues to shift its focus and adjust its business operations, it will likely be no surprise to see further corporate layoffs in the near future. For now, Apple asserts that the current restructuring will have minimal long-term impact on its workforce and will instead bring increased efficiency and greater growth. Unfortunately for those employees who have now lost their jobs, the economic strain caused by permanent job loss will be no easier to bear.