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Apple employees could receive yearly bonuses as cost-cutting continues

By Nithya Bose in US business news, posted March 15, 2023

Apple is putting off regular bonuses for corporate units and freezing hiring as part of its ongoing cost-cutting measures.

Sources in the tech giant said the move would limit the frequency of bonuses for a section of Apple's corporate staff.

Apple plans to tighten its belt by pausing hiring and not replacing employees who leave the firm.

Apple used to give out bonuses and promotions once or twice a year, depending on the department.

Those bonuses were usually in April and October.

The group will not get bonuses or promotions under the new scheme, and all divisions will switch to an annual schedule, with payments happening only in October.

Most of Apple’s units had already changed to a once-a-year schedule for bonuses and promotions, including software engineering and services.

But employees in operations, corporate retail, and other departments were still on the outgoing biannual plan.

Apple started efforts to reduce costs last July when spiraling prices and recession fears pushed it to adopt a more cautious approach.

Unlike its peers, Apple has avoided mass job cuts, instead focused on curtailing budgets, limiting headcount goals, and freezing hiring in various divisions.

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Staff will still get their full bonuses, but just in one installment rather than two.

But the shift may surprise employees, especially since Apple hasn't offered any prior notice in some cases.

Workers frequently rely on such bonuses to supplement their budgets.

The move may also help keep staff who had intended to depart the firm after collecting their April payout.

Engineers, non-managers, and mid-level managers are affected, while senior personnel at the director level and beyond are not.

Source: Bloomberg

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