Apple will influence the tech industry significantly with its ‘buy back’ program
By Quantum Capital Fund
As the technology industry moves ever closer to greater adoption of mobile media, companies who struggle to keep up with the changing nature of the industry may find themselves struggling for survival staring austerity measures in the face in order to maintain the status quo.
One of the first cost cutting measures that a struggling company adopts is job cuts. A company which is fast becoming a good example of this is Zynga, the online gaming giant has struggled to keep up with user trends and has not captured the imagination of the industry with its new titles. This has forced the company to tone down its operations and recent reports show that the company is being forced to lay of an estimated 18% of its workforce.
Arstechnica.com points out that the announcement came on June 3 2013 and has received mixed reactions in the market. "The move will affect every part of the San Francisco social gaming company and cut $80 million in staff costs," AllThingsD's Kara Swisher reports. "But the action will also include the closing of its offices in New York, Los Angeles, Austin, and Dallas, as well as the slashing of other major infrastructure costs, adding to the total expense reduction that is likely to be much larger."
On the other side of the spectrum, a company that is doing well and is confident about its growth prospects will increase its staff complement in line with projected demand. This is currently the case with Apple who is hoping to expand its workforce by 50% over the next three years.
The Huffington Post reports that the projections detailed in a report released Tuesday envision Apple hiring 7 400 more workers at its Cupertino, California, headquarters between now and the planned completion of a new office complex in 2016. Apple Inc. now employs about 16 000 people in and around Cupertino, the company's home town for most of its 37-year history. That accounts for about one-fifth of Apple's nearly 73 000 employees worldwide.
One of the hallmarks of the technology industry is that it is never static and is always evolving. Companies that are able to keep up with the changes in the markets are those that can develop cutting edge products which are in demand. It is clear that the late Steve Jobs left Apple with more than just his name and his legacy. He left behind a clearly defined blue print which Apple is confident will enhance the company’s popularity. Zynga on the other hand is resting on old laurels and while the company was popular in the past, the public is growing bored with FarmVille and CitiVille.