Apple has started laying off contractors amid tech layoffs: sources

Apple — which has so far avoided the mass layoffs that have called for tens of thousands of workers at Amazon, Google, Meta and Microsoft — has quietly begun cutting contractors, On The Money has learned.

According to people with direct knowledge, in recent days the iPhone maker has begun cutting ties with hundreds of contractors — workers technically employed by outside agencies who work with Apple employees on projects — in what appears to be a stealthy move, to reduce costs.

Instead of waiting for contracts to expire, which are typically renewed every 12 to 15 months, Apple is firing contractors outright, sources said. One contractor claimed to have been caught off guard and said Apple management had assured him all jobs were safe. Just a few weeks earlier, some were pleased that Apple hadn’t over-hired like other tech companies, the source added.

Apple CEO Tim Cook has previously described Apple’s layoffs as a “last resort.” But insiders say the company sees laying off contractors as cutting costs — not actually laying off employees. Getting rid of contractors is an easier way to thin out the workforce because Apple doesn’t have to pay severance payments or face potential lawsuits from employees alleging wrongful termination.

Apple hasn’t disclosed the size of its contractor staff, but previous reports suggest it numbers in the thousands, with three dozen staffing firms helping with project management, launching events and even creating Apple Maps.

Insiders say some contractors are complaining that they’re being treated like second-class citizens. With no stock options, health insurance, and other perks, they’re forced to work more than a mile from Apple’s “spaceship” headquarters in Cupertino, California, in a facility that lacks both relatively bland architecture and free snacks.

An Apple spokesman declined to comment.