According to Mark Gurman, a longtime Apple observer, Apple Inc. (NASDAQ: AAPL) is stepping up attempts to “decentralize” from its Apple Park headquarters in Silicon Valley, citing problems in hiring and maintaining talent there.
What Happened: Apple’s senior brass have long opposed decentralization, but that attitude has shifted for a variety of reasons, according to Gurman in the second issue of his Bloomberg weekly “Power On.”
Also see: Brown, Josh Apple is described as a “miracle company.”
Apple employees are struggling to pay the exorbitant cost of living in the San Francisco Bay Area, according to Gurman, who is known for his insider information on the Cupertino-based corporation. As a result, Apple has been losing talent.
Apple has also discovered that its operating costs in Silicon Valley are quite high, and that it could acquire the same work from staff in less expensive places, according to Gurman.
Why Does It Matter? Apple’s intention to decentralize follows news that the tech company planned to test a hybrid in-store and work-from-home program for its retail staff last week.
Apple has also urged its corporate employees to work from home three days a week starting in September, but the move has been met with opposition. Apple, on the other hand, stated that “in-person collaboration” is critical to its culture and future.
On April, Apple announced plans to invest more than $1 billion in a new campus in North Carolina, while another $1 billion campus is being built in Austin, Texas. In Miami, New York, Pittsburgh, and Portland, Oregon, the business said it had met or exceeded its 2018 hiring commitments.
Price Changes: In Friday’s trading session, Apple shares closed over 2% higher at $139.96.
Read Next: Foxconn, an Apple supplier, sees a 20% increase in Q2 revenue (C) 2021 Benzinga.com. Benzinga does not offer financial advice. All intellectual property rights are reserved./n
