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.
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.