Apple will slow hiring and spending amid broader tech industry downturn

The iPhone maker reportedly joins Meta, Google and Tesla in putting a brake on new hires and spending

Apple is cutting back on new hires and spending next year amid growing fears the United States economy is heading towards recession, according to a Bloomberg News report.

The move would see the iPhone maker join other fellow tech giants Google, Meta, which runs Facebook and Instagram, and Tesla in slowing new hires.

Apple shares fell two per cent on the news to just over $147, and the news appeared to send the Dow Jones, S&P 500 and Nasdaq indexes lower after all three had earlier been in the green.

Apple stock has fallen 17 per cent year-to-date, but is still easily the most valuable company in the world with a market capitalisation of $2.38 trillion.

Bloomberg News said the slowdown in spending was not a companywide policy and would only affect certain divisions, citing anonymous sources with knowledge of the move.

Apple is planning to launch its new mixed reality headset in 2023, part of an ambitious new product launch that will include revamped versions of the Apple TV, Apple Watch, AirPods Pro and HomePod.

With inflation soaring to a 40-year high of 9.1 per cent, the Federal Reserve raising interest rates and consumer confidence low, experts fear the US economy is contracting.

Apple CEO Tim Cook said rising inflation was impacting profits and operating expenses during the company’s most recent earnings call. Apple is due to report its third quarter earnings on 28 July.

The Independent has sought comment from Apple.