Execs question Amelio leadership

Today isn't the first time that Gil Amelio has told thousands of Apple employees that their jobs were finished. Last April, the CEO gave walking

Apple execs question Amelio leadership
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papers to 2,800 people, a move announced as part of an effort to reduce costs by outsourcing more manufacturing, cutting assets that weren't producing, and reorganizing everyone that was left. Just like today.

The difference is that last April, Gil Amelio was a CEO still enjoying a honeymoon period with both investors and Apple employees, most of whom looked to him as a white knight that would rescue the company from a fate of financial catastrophe and increasing technological irrelevance. (See timeline.)

With today's announcement that Apple will lay off 2,700 full-time employees and 1,400 temporary and contract workers, Amelio wants to look again like that white knight. But nearly a year later and with $120 million more reported in financial losses, Amelio has lost the confidence of some of the executives who are supposed to execute his rescue plan. With almost 25 percent of the company on its way out, morale is suffering at all levels of the company--some say the most productive activity inside Apple right now is the rewriting of resumes.

But according to NEWS.COM interviews with a half-dozen current and former Apple executives, even some top-level Apple managers are no longer sure if Amelio has a plan that can revive the good old days at Apple.

"There was some momentum through inertia [when Spindler left]. Gil didn't change the momentum," said a senior Apple hardware development and marketing executive. "He would not say, do this and not that. It was more like, do everything, It was frustrating. He didn't set priorities and we didn't have the money to do all things."

Amelio's reputation is also being sullied by executives who recently left the company after a major shakeup announced in February. Several high-level executives, including former chief operating officer Marco Landi, were in effect demoted by the reorganization and several senior managers left within weeks. Some of these former executives say that Amelio's lack of resolve was a factor in their decision to quit.

Amelio was not available for comment. Jeni Johnstone, an Apple spokeswoman, said in response to some of the issues raised by current and former executives, "We don't comment on rumors and speculation."

One executive thinks that Amelio is more comfortable tinkering around with the company's management structure than reshaping its product lineup, which is why today's announcement wasn't made months ago. The disgruntled executives' major complaint about Amelio is that he takes too long to make a decision and isn't projecting the authority expected of a leader in charge of a crisis situation.

Said one former sales executive: "Amelio is a waffler. He has no courage of his convictions."