Apple Computer is considering big staff cuts

Article Abstract:

Apple attempts intends to reduce annual operating expenses by $400 million, a plan which is rumored to involve a significant layoff. Executives have disclosed privately that Apple may dismiss a minimum of 1,000 workers; details are expected to be released by Jun 1991. An article in the San Francisco Chronicle estimated the layoff to number 2,000, which caused Apple's stock to close at $47 a share on May 17, 1991. That figure represents a $2 decline on national over-the-counter volume of 4.2 million shares. Apple is expected to reorganize its distribution in addition to the job cuts, and Apple will utilize superstores and traditional department stores to sell its products. Apple cut prices on its Macintosh computers in Oct 1990, and now must offset the decline in prices by reducing operating expenses, which claim 37 percent of revenue. Apple has doubled its market share since cutting Macintosh prices.

Price cutting, Distribution Management

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At Apple Computer proper office attire includes a muzzle; big secrecy campaign seeks to silence gossips; John Sculley's jammies

Article Abstract:

Apple wants to prevent its employees from sharing work-related information with others, but the information security campaign seems to be backfiring. A group of software pirates, the New Prometheus League, mailed floppy disks containing some of Macintosh's secret software code to outsiders, including a Wall Street computer industry analyst. Apple fired a software engineer who posted plans for future projects on a computer bulletin board. MacWeek reviewed the Macintosh IIci two months before it was to be introduced. The crackdown on such leakage is generally limited to propagandizing posters, and the knowledge among employees that Apple will back up indiscretions with dismissals. But the employees want to stop the leaks, too. They cite outside developers who have leaked prototypes of products. One hobbyist even goes through Apple's trash looking for discarded memos and shares them with media.

Methods, Management, Occupational training, Employee training, Business intelligence, Competitive intelligence, Security, Personnel Management, Training of Employees, Industrial Espionage, Sculley, John

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Apple Computer to fire 10% of its staff in restructuring bid to cut expenses

Article Abstract:

Apple Computer Inc plans to lay off 10 percent of its employees by Jun 1992 as part of a cost-reduction effort. The computer maker plans to dismiss 1,500 out of its 15,600 employees in an effort to recover from the profit erosion its new low-priced, high-volume strategy has created. Apple decided to capture more of the microcomputer market share by selling its popular Apple Macintosh microcomputer at roughly half the price at which it used to sell them. Investors have not reacted favorably to Apple's success in selling its products at low-cost and have sent the price of Apple stock down from a high of $70 a share in recent months to close at $44.25 a share on May 20, 1991.

Computers, peripherals & software, Cost control, Cost Reduction, Reorganization

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