Apple Inc. will slow spending in some areas next year and scale back hiring initiatives, Bloomberg reported today.

The report didn’t go into much detail about how Apple plans to implement the cost reductions. However, Bloomberg’s sources did specify that the initiative won’t be implemented as a companywide policy. Only some business units will be affected, while other Apple units are expected to continue operating as usual.

The report suggests that Apple is joining other tech giants planning to scale back spending over the next few quarters. In recent months, Google LLC and Microsoft Corp. have also announced cost reduction initiatives.

The report worried investors on the economic front, as shares in U.S. markets fell less than 1% on the day, after rising earlier in the trading day.

An internal Google memo obtained by The Verge recently revealed that the search giant intends to slow hiring initiatives in 2022. Additionally, the memo detailed that Google’s plans involve “consolidating where investments overlap and streamlining processes.”

Earlier, it was reported that Microsoft is scaling back recruiting across the business units responsible for Windows and the Office productivity suite. The company later confirmed the move.

Despite Apple’s plans to slow recruiting in 2023, the iPhone maker is expected to proceed with its previously reported plans to launch a large number of new products that year. One of the most anticipated new products on the agenda is Apple’s long-rumored mixed reality headset.

Recent rumors indicate that the headset will run on the M2 system-on-chip found in Apple’s latest MacBooks. The M2 includes 20 billion transistors, 25% more than the previous-generation M1. The chip’s onboard central processing unit provides up to 18% higher multithreaded performance than its predecessor, while the onboard graphics processing unit offers a 25% speed increase.

Apple’s mixed reality headset is set to make its debut next year alongside a raft of other new products. The company is reportedly preparing to introduce four new iPhones, an updated Apple Watch and multiple MacBooks.

Some of the upcoming MacBooks are believed to feature a new, more advanced iteration of Apple’s M2 chip dubbed the M3. The M3 will reportedly be produced using advanced three-nanometer processor manufacturing technology. It’s expected to feature an onboard CPU with 40 cores, more than four times the number of cores in the CPU of Apple’s current-generation M2 chip.

Today’s report about Apple’s plan to balance cost reductions with new product launches in 2023 follows a strong second quarter for the company. The iPhone maker increased revenues 9% year-over-year during the quarter to $97.28 billion, topping the consensus analyst estimate by more than $3 billion. Apple’s earnings per share of $1.52 exceeded expectations as well.

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