APPLE TO TRIM 1,300 JOBS\Firm to carve high-end niche.Byline: Catalina Ortiz Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Losing money and market share, Apple Computer Inc. moved Wednesday toward becoming a different company, eliminating 1,300 jobs and abandoning some sales opportunities to other firms. Apple said it will concentrate on "best-of-class" computers in its key markets, including desktop publishing desktop publishing, system for producing printed materials that consists of a personal computer or computer workstation, a high-resolution printer (usually a laser printer), and a computer program that allows the user to select from a variety of type fonts and sizes, , education and the home. Such machines are more profitable than those in the entry-level consumer market, which Apple apparently now plans to leave to companies that clone clone, group of organisms, all of which are descended from a single individual through asexual reproduction, as in a pure cell culture of bacteria. Except for changes in the hereditary material that come about by mutation, all members of a clone are genetically its Macintosh computer. The changes are an "initial phase" of a reorganization Apple announced with its financial results for the last three months of 1995. The company, as it previously warned, lost $69 million, or 56 cents a share, in the period, its first fiscal quarter. Apple earned $188 million, or $1.55 a share, in the same period in 1994. Apple also forecast a loss for the second fiscal quarter and said that loss would be worsened by a $125 million charge to pay for the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). . Sales in the latest quarter rose 11 percent, to $3.1 billion from $2.8 billion. And unit shipments grew 12 percent to 1.3 million. Such volume is the highest ever for Cupertino, Calif.-based Apple. But it was below internal targets and sharply behind the overall industry's growth, which means the company lost market share. The company's gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. fell to 15.1 percent of sales during the quarter, down from 20.7 in the previous quarter and 28.7 a year ago. "The task in which Apple management and its board of directors is currently engaged is to utilize Apple's strengths in order to position the company for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strength and success," Michael Spindler Michael Spindler (born 1942 in Germany), nicknamed "the Diesel" for his reputed around-the-clock work habits, was president and CEO of Apple from 1993 to 1996. Having joined Apple in 1980, he rose through the ranks in Apple's European operations as President of Apple Europe , Apple's president and chief executive officer, said in a statement. "The most immediate and obvious work we must undertake is to quickly streamline operations. The work-force reduction is a necessary first step." Apple's troubles have sparked speculation about whether Spindler would keep his job. But the company's announcement did not mention any change in his status. The 1,300 layoffs, about 8 percent of Apple's work force, will take place over the next year. Most will be in sales, marketing and administration, Spindler said. Industry analysts had speculated that Apple could lay off up to 3,500 of its 14,000 employees. It was not immediately known if further reorganization would mean more job cuts. "(Apple) can no longer be all things to all people. And it must emerge as a company that focuses on products that they do well," Tim Bajarin, president of Creative Strategies Research International, said of Apple's more restricted focus. One Apple observer wasn't impressed im·press 1 tr.v. im·pressed, im·press·ing, im·press·es 1. To affect strongly, often favorably: with Apple's announcement. "I see no new strategy. I see sort of a Band-Aid to stop the hemorrhaging, and not a very effective Band-Aid at that," said Pieter Hartsook, publisher of the Hartsook Letter in Alameda Alameda (ăləmē`də, –mā`də), city (1990 pop. 76,459), Alameda co., W central Calif., on an island just off the eastern shore of San Francisco Bay; settled 1850, inc. as a city 1884. , Calif. The company's announcement came after financial markets closed. Its shares closed at $34 a share, down 37-1/2 cents. CAPTION(S): PHOTO Photo (1--Color) Apple Computer Inc. will start laying off workers after losing market share despite record sales in the last quarter. Associated Press (2--Color) Michael Spindler Positioning for long term |
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