It seems that a wave of mass layoffs is happening all over the technology sector. And the most recent news is from Apple (AAPL), which is also going to lay off some of its non-seasonal employees.
According to insider information, the employees working at retail stores (not including Apple Stores) will be affected. This information was verified by multiple sources, which tells us that it is not fake at all.
People aware of the matter have revealed that Apple employees who are working at Best Buy Stores & similar retail chains will be affected. In fact, many of these employees have already received a 30-day notice related to this matter.
If this happens, it will be yet another big blow to the US technology sector. There are big tech companies, such as Microsoft and Alphabet, which are planning cut thousands of jobs. And now, we have Apple, which is downsizing the retail channel employees.
One thing to note here is that the seasonal employees of Apple are also going to leave the company. These employees usually work on a contract, and most of these contracts are already expired.
For now, there's no clear information about the extent of these layoffs and how much percentage of the employees will be affected. But the fact that we have confirmation from multiple sources tells us that it is indeed happening.
We also need to account for the drop in Apple's product/service sales as well. In simple words, Apple is making less money than before and thus will also adjust its headcount number based on its financial statements.
And last but not least, 2023 could prove to be a difficult year for Apple and other tech companies. Because if the fears of recession turn out to be true, Apple's product sales will be affected significantly.
But not everything is so bad in 2023 - We also have the Chinese economy opening up, which will solve some of Apple's supply chain problems.