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]
Subscribe today so you don’t miss any TidBITS articles!
Every week you’ll get tech tips, in-depth reviews, and insightful news analysis for discerning Apple users. For 29 years, we’ve published professional, member-supported tech journalism that makes you smarter.
Registration confirmation will be emailed to you.