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Apple Begins Cutting Ties with Contractors Amid Mass Tech Layoffs

Apple begins firing contractors instead of employees, a cost-cutting measure, to reduce its workforce. The size of Apple's contractor workforce is still being determined but is thought to number in the thousands. Some contractors feel disadvantaged and treated like second-class citizens.

Apple Store
Apple Store

Apple, known for avoiding mass layoffs like those seen at tech giants such as Amazon, Google, Meta, and Microsoft, has quietly started cutting ties with hundreds of contractors, according to sources with direct knowledge.

Contractor Firings at Apple

The iPhone maker has begun to cut costs by outright firing contractors instead of waiting for their contracts to expire every 12 to 15 months. Despite reassurances from Apple management, some contractors have needed guidance with the move.

Cost-Cutting Measure Instead of Layoffs

Apple views letting go of contractors as a cost-cutting measure rather than firing employees. The company won't have to pay severance or face potential litigation from employees alleging wrongful termination, reducing the workforce easier.

Apple Park
Apple Park

Size of Apple's Contractor Workforce

The size of Apple's contractor workforce is undisclosed. Still, past reports suggest its numbers in the thousands, with assistance from several dozen staffing firms for project management, launch events, and even creating Apple Maps.

Disadvantages for Contractors

Some contractors have expressed frustration at being treated like second-class citizens, lacking access to stock options, health insurance, and other benefits. They must also work at a separate facility, far from Apple's headquarters in Cupertino, California.