While Apple may have avoided the significant layoffs that have plagued other Big Tech companies like Amazon and Meta until now, it now seems that the company is quietly cutting ties with contractors.
Mass waves of layoffs have plagued tech giants over the last several months. Meta, the parent company of Facebook and Instagram, laid off 11,000 employees in November. Amazon laid off 5% of its workforce.
Now, it appears that Apple is making some cuts to its workforce, starting with its independently employed contractors.
Contractors are not technically Apple employees but often work alongside Apple employees on various projects. A typical work contract must be renewed every 12 to 15 months.
However, instead of waiting for contracts to expire, Apple is allegedly firing contractors outright, according to On The Money.
Apple does not disclose the number of contractors that it works with, but the number is likely in the thousands. According to On The Money, insiders claim that contractors say they're treated like second-class citizens. Independent Contractors do not have stock options or health insurance and generally do not work at Apple Park.
Apple has been praised for avoiding mass layoffs in recent times.
Apple CEO Tim Cook has gone on record recently stating that the Cupertino-based company is being very deliberate in its hiring, and only hiring in specific departments.
As a result, the tech giant has avoided the mass redundancies that many prominent technology firms have done.
19 Comments
I worked a contract position for one engineering company that made a point of telling all of us contractors that when they brought in free doughnuts for the employees on Friday mornings that they were only for regular employees and not contractors. It was funny. One of the guys I worked with told me a story that he worked for a large engineering company that had an employee Thanksgiving holiday meal where they told the contractors they weren’t invited, which I found hilarious given the meaning of Thanksgiving.
Contractors are their own company. Why would they expect perks from a client? Are they giving perks to the client?
The reason you have contractors is for special skills or to supplement existing employees. It gives you an easy way to quickly bring people in and purge without laying off any employees. It’s also a way to test drive roller without having to hire and fire if they do not work out. I have heard of companies using a contractor hiring them in exchange for a negotiated fee. All depends on the agreement.