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News > Companies
Apple to slice staff
January 31, 1997: 3:12 p.m. ET

Company confirms it will lay off workers; analysts estimate 2,500 cuts
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NEW YORK (CNNfn) -- Apple Computer confirms it will lay off workers "as part of a broader restructuring of the company." The restructuring will be Apple's second in 12 months.
     The move comes in the wake of a $120 million loss last quarter as sales of its Macintosh computers dropped 29 percent. Apple says it won't be profitable until its fourth quarter, which ends Sept. 30.
     Apple spokesman David Harrah told CNNfn the restructuring will be announced in the near future, probably within a month, adding the company had made no decision about how many workers or which Apple programs will be affected.
     Analysts expect the company will cut as many as 2,500 of its 13,500 workers in the next round. Apple cut 1,500 jobs last year.
     As part of the company's bid to return to profitability, Apple CEO Gilbert Amelio told USA Today he is taking a close look at Newton, Apple's $1,000 handheld computer. After three years on the market, the product has yet to turn a profit.
     "Maybe we missed the boat," Amelio said.
     In any case, Apple will continue to support its current Newton customers. The company has licensed the machine's operating system to 12 makers of handheld computers. And the $800 kids' version, eMate, remains a priority, Amelio said.
     On the chopping block, however, is Pippin -- Apple's below $500 version that combines television Web surfing capabilities with a game player. Newer competing products eclipsed Pippin in price and quality since its development began in 1993.
     Amelio also told the newspaper that Apple might shrink to $7.5 billion per year in revenue -- a bigger drop than he expected. The company already had said it expected to contract by 18 percent to $8 billion in fiscal 1997. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.