The year 2023 began with large companies carrying out mass layoffs. A apple remains firm in the decision not to dismiss its employees in order to remain stabilized in the face of economic problems. As a strategy, according to the New York Post, the company has terminated contracts with outsourced services so that fixed employees are not terminated.
Companies, even the largest, use outsourced services to manufacture their products. These are contracts that can last for a short period, from 1 year to a maximum of 15 months, which will depend on the demand offered by the outsourcing. Incidentally, shorter contracts are the main financial cause of Big Techs, as the workforce outsourcing does not guarantee labor rights that, generally speaking, a job in a large company offers.
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It is more comfortable for Apple to get rid of these smaller contracts, which are not entitled to compensation, than to fire an employee and face all the labor claims that involve money. This has even been the new trend around the world. Effective employees will soon be fewer in companies. Preference will be given to freelancers and outsourced service providers.
Apple announces it will not have mass layoffs
This year started with news of layoffs for the technology area. In all, 110,000 employees were dismissed from their duties. The pandemic demanded a higher quality of technology so that the whole world could migrate to the virtual environment. Meta, controller of the Facebook, Instagram and WhatsApp, along with Alphabet and Microsoft had to carry out mass layoffs due to the excess of contracts carried out in the pandemic.
Apple CEO Tim Cook has taken a tough policy on this issue, cutting 40% of his salary. The company manages to maintain the contract framework it had in 2016 and had less than 7,000 new jobs in 2020, even with the high demands of the market. In August 2022, Apple disposed of 100 service providers.
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