Apple to cut 4 million jobs, cut jobs at 9 companies

Apple is expected to cut a record number of jobs, including the company’s senior leadership team and its worldwide operations, the company announced Tuesday.

Apple is slashing 4 million employees worldwide and is expected in the third quarter to report a loss of $11.5 billion.

The company also said it will cut more than 1,000 jobs at its California headquarters.

Apple’s quarterly loss will be more than $20 billion, the second-largest in Apple history.

Apple Chief Executive Tim Cook, in a conference call, said Apple would cut $1 billion in its corporate social responsibility program, which helps employees, families and communities, to help it focus on the most important of its core values.

Cook said the cuts are necessary to keep the company on a path to profitability and the “biggest” for Apple’s shareholders.

“The biggest thing for me is we need to continue to do this to make sure we have a good balance between our growth and our sustainability,” Cook said.

Apple has struggled for years as it struggled to keep its profits up with higher-than-expected costs of producing products.

Apple’s shares fell more than 4% to $19.99 Tuesday in early trading.

Apple shares closed down 0.9% to 1,637.83 in early afternoon trading on Tuesday.

The company’s stock, which rose 4% in early morning trading, has been in a downtrend for the past several months.

Apple stock has also been hit by rising commodity costs in China and by the Federal Reserve’s stimulus measures.

The Fed’s latest rate hikes, however, have not been sufficient to offset a decline in China.

In a statement Tuesday, the Federal Deposit Insurance Corp. said it is “actively monitoring” Apple’s finances and has been “very concerned” by some of Apple’s decisions in recent years.

Apple said it was reviewing its compensation programs, including pension plans and severance packages, and would be working to implement additional changes.


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