Apple is planning to cut back on the hiring process of its few sections. The firm had to take this decision following the less-than-expected sales of iPhones last year. This move by the firm has pushed the whole smartphone sector into the concern. Another reason that forced the firm to take this decision is its missed revenue estimation for the holiday quarter, as per the people familiar with this issue.
Tim Cook, Chief Executive Officer, Apple, revealed this news to the firm’s employees earlier this month in a meeting, which was held the day after his letter to investors about the firm’s present critical situation, mainly in China region. During this meeting, Cook was asked if the firm would force a hiring freeze as a response. While answering this question, Cook proclaimed that he does not believe that was the answer to this issue. Instead, Cook proclaimed, that some divisions might minimize hiring, as per the individual, who asked not to be disclosed the identity discussing confidential matters.
On a similar note, Alibaba Group Holding Ltd. came into the news as it disclosed that it is considering cutting its expenditure on travel. It also revealed the rescheduling of some additional hiring as China’s biggest e-commerce firm braces for a decelerated economy, individuals familiar with the issue proclaimed. Few new hires were informed that they cannot join their duties until the new financial year, which starts in April 2019, the individuals said, asking to be kept their names confidential.
The latest travel cuts by the firm include limiting business class airfares on a unit-by-unit basis. With this move, the company staff will only be able to choose a premium cabin on every fifth business trip, which requires over 20 Hours, one of the people stated. The trade war with the U.S. is throwing a larger shadow over China. In September 2018, Jack Ma, Chairman, Alibaba, had cautioned about confronts the firm as well as the regional economies are facing as tensions rise.