Apple Layoff: Despite a significant increase in sales, Apple has cut its sales team.
iPhone maker Apple has cut its employees. The cuts affect several sales positions in enterprise, education, and government teams. This move comes as a surprise, given the steady growth of iPhone sales. The company is now changing its sales approach to institutional customers. This move signals a strategic shift from direct sales to third-party resellers. Let’s explore the details of Apple’s employee layoffs.
According to a Bloomberg report, the company is making the changes to connect with more customers, and only a few positions will be affected by these layoffs. The company has given employees until January 20th to apply for other positions within the company. The largest reductions have been made in the government sales teams working with the Department of Defense and the Department of Justice. The team was facing challenges due to the 43-day government shutdown in the US and budget cuts by the government’s efficiency department.
Some of the affected employees had been working at Apple for 20-30 years. Apple’s move has surprised many employees, as Apple is recently on track for a record-breaking quarter with estimated December sales of approximately $140 billion. Affected employees told Bloomberg that the company is now exploring third-party resellers for sales. This will help Apple reduce salary costs.
However, the company is still hiring and has given laid-off employees the opportunity to apply for open sales positions. These layoffs in the US follow similar reductions of approximately 20 positions in Apple’s sales teams in Australia and New Zealand a few weeks ago.