John Ternus could borrow from Microsoft’s playbook to reinvigorate Apple

Key Points:

• Microsoft has introduced a voluntary employee buyout program allowing employees whose age plus tenure equals 70 or more to retire early with a likely substantial payout, aiming to reduce headcount without hostile layoffs.
• Apple has largely avoided over-hiring and mass layoffs but faces challenges with a slow influx of new talent and a senior workforce that may be less motivated, often engaging in "rest and vest" behavior tied to stock compensation vesting schedules.
• The "rest and vest" issue arises when long-tenured employees coast through work after vesting their stock grants, potentially impacting productivity and software quality, especially given Apple's conservative hiring approach.
• A similar voluntary buyout program at Apple, possibly with a lower threshold (e.g., age plus tenure of 60), could help rejuvenate the workforce by encouraging early retirement among senior employees and bringing in fresh talent under new leadership.
• Implementing such a program would require a phased approach to avoid excessive talent loss but could support Apple's future transformation while maintaining fiscal conservatism.