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Why Apple Could Layoff Between 25,000 And 30,000 Of 115,000 Employees By End Of Year

Apple Inc. NASDAQ:AAPL, Intel Corporation NASDAQ:INTC - Why Apple Could Layoff Between 25,000 And 30,000 Of 115,000 Employees By End Of Year

Apple Inc. AAPL 0.56% has recently been laying off around 100 contract and full-time recruiters, but Global Equities Research analyst Trip Chowdhry believes this is just the tip of the iceberg for Apple layoffs. Chowdhry estimates that Apple will cut between 25,000 and 30,000 of its 115,000 employees by the end of 2016.

Chowdhry is extremely critical of Apple management and blames them for a “Bozo Explosion” among Apple employees.

“[The] Apple Executive team has zero vision, zero passion and zero insights and the Trio-Bozos (CEO Tim Cook, CFO Luca Maestri and Head of Retail Angela Ahrendts) need to be replaced soon before irreparable damage is done to Apple,” Chowdry explained.

Related Link: Why Q1 Earnings Season Has Been More Bullish Than It May Seem

He predicts that the United States will soon enter into a recession and that the technology sector alone will issue more than 369,000 layoffs by the end of the year.

Not An Unprecedented Move This Year

Just this month, Intel Corporation INTC 0.47% announced 12,000 layoffs, and both Yahoo! Inc. YHOO 0.79% and NetApp Inc. NTAP 1.45% have each cut more than 1,500 employees this year.

Chowdhry believes the U.S. Federal Reserve is out of touch with the reality of the U.S. economic situation and blasts Vice Chairman Stanley Fisher for his insistence on raising interest rates.

Chowdhry says the tech world is becoming far more efficient and less employees will be needed to do the same amount of work.

Disclosure: The author holds no position in the stocks mentioned.

DateFirmActionFromTo
Apr 2016Brean CapitalMaintainsBuy
Apr 2016BarclaysMaintainsOverweight
Apr 2016CitigroupMaintainsBuy

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