Apple Takes A Bite Out Of Its Corps
Apple Computer says it will lay off 10% of its work force, or more than 1,500 employees, to offset deteriorating profit margins. Apple successfully introduced new low-priced personal computers to rebuild declining market share last fall, and unit sales skyrocketed 85% in the March quarter. But margins declined rapidly because the company sold fewer of its more expen-sive, higher-margin computers than it expected. Chief Executive John Sculley attributed sluggish high-end sales to a slowdown in the domestic PC industry, as well as to a strengthening dollar that cut into Apple's recent international sales boom.
The layoffs, the largest in Apple's history, could cost the company $75 million but will eventually save up to $200 million a year.