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Apple to Reorganize & Lay Off 1,300 People

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Apple to Reorganize & Lay Off 1,300 People -- Last week Apple officially announced a $69 million loss for its first fiscal quarter of 1996 (despite increased sales) and revealed plans for a company-wide restructuring which will include laying off about 1,300 employees from administration, sales, and marketing. The reorganization is expected to cost Apple at least $125 million next quarter, as well. Apple also announced plans to pursue broader licensing of the Mac OS and simplify its product line, possibly withdrawing from low-end and some mid-range markets. Supposedly, these markets would be opened for clone makers, although the ability of any clone vendor to meet demand in the low-margin, low-end market is unknown. Although the Wall Street Journal reports Apple has been shopping around for a buyer, Apple maintains it is not for sale, and analysts don't see a problem with Apple holding onto its core markets in publishing, home, and education. Meanwhile, speculation continues about the future of Apple CEO Michael Spindler. [GD]

http://product.info.apple.com/pr/press.releases /1996/q2/960117.pr.rel.q1earnings1.html

 

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