Apple, Qualcomm Skip Layoffs Brian Caulfield, 03.05.09

It looks like Apple is doing something right. In an economy like this only the strong survive. Yet even the strongest names in the technology sector are turning to the business weapon of last resort: layoffs. The only exceptions: Apple and communications chip specialist Qualcomm.

Of the 10 U.S.-based software and hardware companies with the largest market valuations, only Apple (nasdaq: AAPL - news - people ) and Qualcomm (nasdaq: QCOM - news - people ) have been spared the widespread job losses that have been plaguing corporate America over the past year.

Cisco (nasdaq: CSCO - news - people ), Intel (nasdaq: INTC - news - people ), Oracle (nasdaq: ORCL - news - people ), IBM (nyse: IBM - news - people ). These are all companies with fortress-like balance sheets and steady profits. Yet all of them have let workers go recently. Even Steve Ballmer, chief executive of mighty Microsoft (nasdaq: MSFT - news - people ), has swung the ax, announcing in January that the software giant will lay off 5,000 workers, or 5% of its workforce.

While Qualcomm isn't laying off, it is clamping down. Chief Executive Paul Jacobs announced a wage freeze and a hiring cap, ending a hiring spree that saw the company adding thousands of jobs to its payroll over the past few years.

"We have not done what a lot of other companies have done, which is have massive layoffs across the company," Jacobs said at Qualcomm's annual shareholders meeting Tuesday. "We have had some targeted reductions, but for the most part we've managed to maintain our workforce."

Apple, meanwhile, continues to think different. While competitors are flooding the market with cheap netbook computers, Apple is sticking to its strategy: Sell pricey, yet powerful, computers and stylish music players, as well as smart phones. The result: Apple has maintained its gross margins of 34.7%, even as other companies struggle to make a buck.

To be sure, Apple employees haven't been immune to the kind of corporate reshuffling that goes along with a steady paycheck these days. Back in May, Apple eliminated 175 sales jobs at its Elk Grove, Calif., campus. Those employees, however, were offered the option of relocating to Austin, Texas.

So, how long can Apple avoid layoffs? At this point, let's hope forever. If Apple employees all have jobs by the time the economy hits bottom, it will give the rest of us someone to sell oranges to. Tip: There's a good spot for a fruit stand around the freeway exit near Apple's headquarters.