Apple Layoffs and Reorganization

Apple Layoffs and Reorganization — It’s been just over a year since Apple’s last reorganization and major round of layoffs, but Apple is expected to announce another sweeping set of changes intended to further focus its business model and cut operating costs by 25 percent. According to reports, Apple plans to organize around three major markets (publishing, education, and the Internet), sell off some key assets (including Pippin and possibly the Newton division), and lay off 2,000 to 3,000 employees this year. In January, Apple said it would announce restructuring plans aimed at cutting some $400 million in costs. After losing about $900 million during the last year, analysts generally agree Apple must reduce its operating costs to hope to return to profitability. Bandai says it will continue to upgrade the Pippin platform and introduce it to new retail markets in 1997. [GD]