Apple – which thus far avoided the mass layoffs that have claimed tens of thousands of workers at Amazon, Google, Meta and Microsoft – has quietly begun axing contractors, On The Money has learned.
According to people with direct knowledge, the iPhone maker over the past few days has started to cut ties with hundreds of contractors — workers technically employed by outside agencies who work alongside Apple employees on projects – in what looks like a stealthy move to cut costs.
Instead of waiting for contracts that are typically renewed every 12 to 15 months to expire, Apple is firing contractors outright, sources said. One contractor claimed to have been blindsided, saying Apple management had assured him that all jobs were safe. Only a few weeks earlier, some had been gloating that Apple hadn’t overhired like other tech companies, the source added.
Apple CEO Tim Cook has previously called Apple layoffs a “last resort kind of thing.” But insiders say the company views letting contractors go as cutting costs — not actually firing employees. Getting rid of contractors as an easier way to thin out the workforce since Apple won’t have to pay severance or face potential litigation from employees alleging wrongful termination.
Apple hasn’t disclosed the size of its contractor workforce, but past reports suggest it numbers in the thousands, with three dozen staffing firms helping with project management, launch events and even creating Apple Maps.
Insiders say some contractors gripe that they are treated like second-class citizens. Deprived of stock options, health insurance and other perks, they are forced to work more than a mile away from Apple’s “spaceship” headquarters in Cupertino, Calif. at a facility which, in addition to relatively ho-hum architecture, lacks free snacks.
An Apple spokesperson declined to comment.
[Written in collaboration with other media outlets with information from the following sources]
