Apple To Slow Down Hiring, Spend Less In 2023

(RTTNews) - iPhone maker Apple Inc (AAPL) has plans to slow down hiring and spending growth in 2023 in some units to cope with a potential economic downturn. The potential move would see the company join a growing group of American companies like Meta Platforms (META) and Tesla Inc (TSLA) in slowing hiring.

According to reports, the changes would not affect all teams and the company was still planning an aggressive product launch schedule in 2023 that includes a mixed-reality headset, its first major new category since 2015.

Market analysts said, "Apple's move reflects a broader slowdown in investing in new things, new companies and new products. It signifies that inflation is an issue for these companies."

Fears had risen in recent months that aggressive interest rate hikes by the Federal Reserve could put the economy into a recession. The price pressures have also raised worries that customers could curb spending on discretionary items like smartphones.

Smartphone shipments declined 9% in the second quarter, according to reports. Still, Apple's iPhones remain among the most sold phones in the world, with the company holding a 17 percent market share just behind market leader Samsung, the data showed. Apple typically launches a new version of its iPhone and other wearable products in September ahead of the busy holiday season.

As of its last annual report, the company had about 154,000 full-time equivalent employees.