The fact that Apple Inc. is the most recent significant technology corporation to limit hiring and expenditure plans adds to the “evidence that even Silicon Valley heavyweights” are concerned about a recession in the near future.
Despite not having a company-wide strategy, the iPhone maker is aiming to restrict spending and employee growth at some of its divisions, according to a report from Bloomberg on Monday. The company’s more circumspect attitude mirrors that of its big rivals, including Microsoft Corp., Alphabet Inc.’s Google, and Amazon.com Inc., all of which have made steps to slow down spending.
The announcement caused stock prices to drop and raised anxiety about the upcoming tech earnings season, which gets underway this week. Companies may find it challenging to reassure uneasy investors. Despite reporting better-than-anticipated revenue growth on Monday, International Business Machines Corp. saw a decline in its stock price in late trade.