Apple Isn't Cutting In The Face Of Recession--Should You?

Posted by: Bruce Nussbaum on November 27, 2007

Todd Walker posted a comment that is very important. He pointed to the fact that some Silicon Valley companies are not cutting back but adding to their talent pool to innovate their way of the downturn. In the last recession, Apple worked on iTunes and the iPod.

According to the SFGate.com, this is what Jobs said at that time: “Apple has maintained its workforce at about 11,000 throughout the year. In a meeting with analysts, Chief Executive Officer Steve Jobs said: “Almost every single competitor has been doing massive layoffs and retrenching and restructuring, but we’re doing quite the opposite. We’re not laying off boatloads of people. We’re taking those talented people and saying that if we’re going to get out of this, we’re going to get out of it by innovating our way out of it.”

Think about that.

Reader Comments

Crawford

November 27, 2007 4:43 PM

Mayhaps the current article in FORTUNE will help to show those with lesser spines what good can come from sticking to a vision through good times and bad.

Well, yeah, I know, but I can hope, can't I?

Kristina Goodrich

November 30, 2007 4:24 PM

I'm not an economist, but it always struck me that to invest in slow times so you are ready to lead when things heat up is blitheringly obvious. And particularly in innovation. If you invest in design, understanding your user and new technology development during a recession, you are positioned to be the first on the block with a new offer when people have money to spend again. And given that innovation occurs in that first small slice of product development, delivery and marketing, it's too late to start the process when the economy is in full heat. The window is alreadty closing. At least, that's what history tells us. Or course, you have to have held on to some of the reserves to see you through these times and that's a matter of strategic intent that requires self-discipline and a long view, always in short supply.

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Want to stop talking about innovation and learn how to make it work for you? Bruce Nussbaum takes you deep into the latest thinking about innovation and design with daily scoops, provocative perspectives and case studies. Nussbaum is at the center of a global conversation on the growing discipline of innovation and the deepening field of design thinking. Read him to discover what social networking works—and what doesn’t. Discover where service innovation is going and how experience design is shaping up. Learn which schools are graduating the most creative talent and which consulting firms are the hottest. And get his take on what the smartest companies are doing in the U.S., Asia and Europe, far ahead of the pack.

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