March 4, 1997 5:00 PM PST

Apple layoffs due March 14

Related Stories

Another Apple exec comes home

February 27, 1997

Hancock says she's staying

February 21, 1997

Landi latest to go at Apple

February 19, 1997

Apple execs leave; Jobs moves in

February 13, 1997

Apple reshuffles but is mum on layoffs

February 4, 1997
Apple Computer (AAPL) employees are counting the days.

Chief executive Gilbert Amelio sent a letter today to the company's 13,000 employees, letting them know that Apple's restructuring plans and, most critically, the number of pending layoffs will be announced March 14.

With the Apple workforce becoming increasingly anxious over the size of the upcoming cuts, Amelio sent the letter to let them know more precisely when the blow will fall. Until today, employees had been told only that they would find out more at the end of February or the beginning of March, according to David Harrah, an Apple spokesman.

On March 14, Apple will disclose which projects the company will stop funding, the number of the layoffs, and the charge that the company expects to take in the second quarter to cover the reductions, Harrah said.

Apple executives have already nailed down more than 70 percent of the specifics for what Amelio has termed the "hot lists and the hit lists," but coming to an agreement on the remaining 30 percent has been tough, according to one inside source. The lists are based on the suggestions of the head of each division.

A source said Apple will definitely discontinue its support of the Pippin operating system, which it developed and licensed to Bandai America for its Internet information appliance. But as of last week the future of the handheld Newton device was still under fierce debate.

With some of the knottier decisions still to be made, some Apple employees will still be left on pins and needles even after March 14.

"This won't be a final, comprehensive list. There will still be stuff we won't be able to talk about at this point," Harrah said. "It would be nice if we could wrap everything up in a nice big bow."

Harrah said pink slips for individual employees will not actually be issued on March 14 but will be issued sometime thereafter. Issuing termination notices overseas may take even longer.

"There are complications and legalities that don't let you make cuts without other steps. Europe, for example, has many laws regarding the time you have to give for notification," Harrah added.

Amelio said at Macworld Expo in San Francisco last January that the bulk of the changes will be announced in March and that other smaller cuts and reorganizations will continue through 1997.

The cuts are the biggest part of Apple's drive to cut $400 million in operating costs and turn a profit by the end of its fiscal year in September. Last quarter, the company posted a surprise $120 million loss, largely due to a slowdown in Performa sales.

The company will also try to offload more of its manufacturing. Last January, the Acer Group announced that it will serve as a major source of components, such as motherboards, for Apple as well as the third-party Macintosh clone makers.

1 comment

Join the conversation!
Add your comment
I WORKED FOR APPLE-VOLT FOR 3 MONTHS AND DID NOT MISS ONE DAY OF WORK AND WAS NEVER LATE AND WENT ABOVE AND BEYOND TO HELP EVERYONE.I HAVE BEEN A LOYAL APPLE CUSTOMER AND HAVE BOUGHT NUMEROUS COMPUTERS FROM THEM IN THE PAST 10 YEARS.
I CAME IN ONE DAY DOING MY NORMAL JOB AND A WIERD LADY WALKED AND SAID COME WITH ME IN A MIDDLE OF A CUSTOMER CALL.I PLACED THE CALLER ON HOLD AND THE LADY WALKED MY IN OFFICE AND THE MAIN MANAGER SAID WE ARE LAYING YOUR OFF!!!!! I WAS DISTURBED BECAUSE IT WAS NOT MY PERFORMANCE OR ME IT WAS APPLE LAYOFFS. I WAS SENT OUT OF THE BUILDING FROM SECURITY AND ALMOST LEFT MY APPLE CERT ON MY DESK BUT HAD TO WAIT IN MY CAR FOR THE SECURITY TO BRING IT(I AM NOT A CHILD) ANYWAY I WENT ON MY WAY TO THE COLLECT UNEMPLOYMENT BUT I WAS DENIED AND I ALSO WAS DENIED FOR FOOD STAMPS. I AM CURRENTLY LIVING IN MY CAR BECAUSE OF APPLE AND I AM HOMELESS. I HAVE BEEN GOING TO THE UNEMPLOYMENT OFFICE LOOKIN FOR JOBS AND I NOTICED THEY WERE REHIRING FOR THE SAME POSITION I JUST GOT LAYED OFF FOR 1 MONTH AGO.WOW THATS NICE I AM HOMLESS AND THEY ARE HIRING FOR MY SAME JOB.SO I CALLED VOLT AND THEY GAVEME THE RUN AROUND FOR 2 DAYS AND NEVER RETURNED MY CALLS(HORRIBLE CUSTOMER SERVICE) I FINALLY HAD TO CALL THEM AND YELL AT THEM AND THEN THEY SAID GIVE ME YOUR EMAIL ADDRESS AND THEY SAID OHHH YOUR ARE NOT ELIGIBLE FOR REHIRE AND ASKED WHY AND THEY SAID WE CANNOT GIVE OUT THAT INFO.
(ISNT WITHHOLDING INFO ILLEGAL???). WELL I WAS LIED TOO BY THE APPLE HIRING MANAGER KURT ......I WAS TOLD BEFORE I WAS LAID OFF THAT IF THE SITE WAS TO REHIRE THAT I WOULD BE ELIGIBLE FOR REHIRE THIS NOT TRUE...............I HATE APPLE NOW AND WOULD NEVER BUY ONE OF THERRE PRODUCTS EVER AGAIN AND I AM GOING TO TELL MY STORY EVERYONE AND TELL ALL MY PEOPLE TO NOT BUY IPHONES OR APPLE PRODUCT THEY SUCK AND THEY ARE LIARS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Posted by APPLELIES (1 comment )
Reply Link Flag
 

Join the conversation

Add your comment

The posting of advertisements, profanity, or personal attacks is prohibited. Click here to review our Terms of Use.

What's Hot

Discussions

Shared

RSS Feeds

Add headlines from CNET News to your homepage or feedreader.