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Apple Said to Target 200 Job Cuts at Beats After Deal

Beats
The purchase of Beats was the biggest in Apple’s history, giving the iPhone maker a music streaming service as well as the Beats headphones line. Photographer: Michael Nagle/Bloomberg

July 31 (Bloomberg) -- After Apple Inc.’s $3 billion deal to purchase Beats Electronics LLC, many of the headphone and music company’s employees won’t be coming along.

The iPhone maker has extended temporary offers to about 200 Beats workers who aren’t guaranteed a long-term role with Apple, said a person with knowledge of the plans, who asked not to be identified because the discussions were private. Those who may be out are in finance, human resources and other roles where there’s overlap, the person said. Beats has about 700 workers.

“We’re excited to have the Beats team join Apple, and we have extended job offers to every Beats employee,” Tom Neumayr, a spokesman for Apple, said in a statement today. “Because of some overlap in our operations, some offers are for a limited period and we’ll work hard during this time to find as many of these Beats employees as we can another permanent job within Apple.”

Staff reductions are often part of large mergers and Chief Executive Officer Tim Cook is showing that Cupertino, California-based Apple will behave no differently as its steps up the pace and size of acquisitions.

The purchase of Beats was the biggest in Apple’s history, giving the iPhone maker a music streaming service as well as the Beats headphones line. Apple had 41,300 employees as of the end of June.

The website 9to5Mac reported the jobs changes yesterday.

Sarah Joyce, a spokeswoman for Santa Monica, California-based Beats, didn’t return a call seeking comment.

To contact the reporter on this story: Adam Satariano in San Francisco at asatariano1@bloomberg.net

To contact the editors responsible for this story: Pui-Wing Tam at ptam13@bloomberg.net Reed Stevenson

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