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Tech Layoffs Mount as Apple Cuts Dozens in Sales Unit

In another sign of the tech industry's woes, Apple Inc. has become the latest Silicon Valley giant to slash jobs, cutting dozens of positions in its sales division, according to people familiar with the matter.

The iPhone maker's move comes amid a broader downturn that has seen over 264,000 tech workers lose their jobs globally so far this year, according to data from the White House. Firms from Meta Platforms Inc. to Amazon.com Inc. have embarked on major cost-cutting efforts as surging inflation, rising interest rates and recession fears take a toll on the sector.

Apple's sales team cuts, which were first reported by Italian news site Startups Italia, are said to impact staff just emerging from the longest government shutdown in U.S. history. That episode, coupled with cost-cutting mandates from Elon Musk's Dogecoin venture, have weighed on potential Apple customers, the report noted.

While the iPhone maker has not disclosed the exact number of jobs lost, the move underscores the extent of the tech industry's retrenchment. In 2023 alone, layoffs have impacted over 114,000 workers, more than double the 52,000 cuts seen in 2022 and exceeding the 264,000 recorded in 2021, the data show.

"When a company as big and successful as Apple is forced to make cuts, it's a clear sign of the challenging environment tech firms are navigating," said Alex Webb, a technology analyst at XYZ Research. "Discretionary spending is drying up, and businesses are having to make tough choices to protect their bottom lines."

The sales team reductions come as Apple grapples with softening demand for its devices amid the broader economic downturn. While the company remains one of the world's most valuable and profitable tech firms, it is not immune to the industry's woes.

Analysts say the iPhone maker's move could presage further belt-tightening across the sector as companies scramble to align their costs with a more uncertain outlook. With the Federal Reserve poised to keep raising interest rates to tame inflation, the tech industry's pain may not be over yet.

"This is just the latest sign that the good times are over for Big Tech," said Sarah O'Brien, a senior editor at Financial Times. "Companies that thrived during the pandemic are now having to make difficult decisions to shore up their finances. More job cuts are likely on the horizon."