Apple to layoff 60 in restructuring effort
In its quarterly report to the U.S. Securities and Exchange Commission on Tuesday, Apple Computer detailed recent expenditures associated with the development of its next-generation operating system, costs incurred by the use Steve Jobs' private jet plane, and plans to layoff of an additional 60 employees.
Apple recorded total restructuring charges of approximately $23 million during the year ended September 25, 2004, the report notes.
"Of the $23 million charge, $16 million had been utilized by the end of the first quarter of 2005, with the remaining $7 million consisting of $3.7 million for employee severance benefits and $3.3 million for lease cancellations."
The company said these actions will result in the termination of 485 positions, 415 of which had been terminated prior to the end of the first quarter of 2005.
The company also said that during the first quarter of 2005 and the fourth quarter of 2004, it spent a combined 19.3 million in costs associated with the development of Tiger. During the same two fiscal quarters, the company said it incurred expenses associated with the use of Steve Jobs' personal Gulfstream V jet totaling $419,000 and $282,000, respectively.
Update: A new report on MacNN provides extensive coverage of Apple's SEC filing, while an earlier article at The Mac Observer also offers some interesting tidbits.
Apple recorded total restructuring charges of approximately $23 million during the year ended September 25, 2004, the report notes.
"Of the $23 million charge, $16 million had been utilized by the end of the first quarter of 2005, with the remaining $7 million consisting of $3.7 million for employee severance benefits and $3.3 million for lease cancellations."
The company said these actions will result in the termination of 485 positions, 415 of which had been terminated prior to the end of the first quarter of 2005.
The company also said that during the first quarter of 2005 and the fourth quarter of 2004, it spent a combined 19.3 million in costs associated with the development of Tiger. During the same two fiscal quarters, the company said it incurred expenses associated with the use of Steve Jobs' personal Gulfstream V jet totaling $419,000 and $282,000, respectively.
Update: A new report on MacNN provides extensive coverage of Apple's SEC filing, while an earlier article at The Mac Observer also offers some interesting tidbits.
Comments
or better,
wonder how Bill Gates is crossing the atlantic !?!?
As for mentioning Steve's jet, it's fair, although even if they did only lay off 60 people they're still in the minor leagues as far as screwing the little guy. IBM laid off far more people to pay for Lou Gerstner's golden parachute, and the average ratio between the highest- and lowest-paid employees has been exploding for the last couple of decades.
Eric
Originally posted by Jwink3101
Just remember that Stevie J. has a salary from apple of $1
How the crap does he make is money? Bonuses? How did the $1 salary come about?
Eric
IIRC, the $1 is so he can get the healthcare from apple.
he does have 2.1 billion and is 262 richest person
http://www.forbes.com/lists/results....sultsStart=226
i thought steve only got $1 from pixar but has a salary from apple...?
why does a billionaire need health insurance? if steve ran into some weird uncurable disease problemo he could finance his own 'advanced space station hospital' and live up there to get well and stuff it would be the first large enterprise to fully run on 100% Mac systems ....... cosponsor: Richard Branson, Paul Allen, etc.
BTW
WHERE ARE THE ORBITING SPACE HOTELS? IT's 2005 !!
Originally posted by aplnub
How the crap does he make is money? Bonuses? How did the $1 salary come about?
Eric
Apple going public
Apple Stock Value
Pixar going public
Pixar Stock Value
Next Computer founding then subsequent sale to apple
Remember Income tax is approx 40-50%
sale on long term capital gains (stocks held over 1 year) = 15-20%
Take $1. in salary pay .40
Sell $ worth of stock pay .20
Difference in the two methods of compensation .20 then multiply by outrageous number = How steve makes his money.
This doesn't take into account his other investments...
Go steve take it all in perks. Non taxable.
woo hoo!
Originally posted by TednDi
Go steve take it all in perks. Non taxable.
woo hoo!
...curious, what other perks??
(besides mac fans that would line up to donate their kidneys if he ever needed it)
Originally posted by sunilraman
...curious, what other perks??
(besides mac fans that would line up to donate their kidneys if he ever needed it)
perks can be very creative.
corporate cell phone
healthcare
401k
free lunch in employee cafeteria
all examples of employee perks. Though Steve can afford all of these and more including his very own gufstream V.
Originally posted by TednDi
perks can be very creative.
corporate cell phone
healthcare
401k
free lunch in employee cafeteria
all examples of employee perks. Though Steve can afford all of these and more including his very own gufstream V.
Bah! He's probably getting boatloads of iMac minis and iPod shuffles for free, then selling them on eBay as "hotApplestuffcheap" (not to be confused with the PC guy who steals apple stuff and sells it, "cheapApplestuffhot"). No wonder we can't buy any of them!
Jobs took the idea from Iacocca, when he was trying to save Chrysler, he got the unions to cut their pays in exchange for him taking a $1 salary. When Jobs was brought back to turn Apple around he agreed to the $1 with performance bounces and stock options. As someone pointed out you rather get stock option and dividend payments than a pay check Uncle Sam gets a lot less of your money.
I have a friend who owns his own business who does the same thing. He pays himself a small salary, but his company buy the car he uses, a daily expense account, and pays him dividends and bounces which he pays far less taxes on.
I found it interesting in the day and age that companies who are doing well laying people off. It seems the new way in management, lay people off before things get too bad. But I assume this was has more to do with the new way Apple is doing business, They seem to have shifted all their non-R&D function off short now. This must be the last of any domestic people they had doing Operations and Distribution.
Jobs took the idea from Iacocca, when he was trying to save Chrysler, he got the unions to cut their pays in exchange for him taking a $1 salary. When Jobs was brought back to turn Apple around he agreed to the $1 with performance bounces and stock options. As someone pointed out you rather get stock option and dividend payments than a pay check Uncle Sam gets a lot less of your money.[/B]
I don't think that this is true - if things work the way I think that they do then you always end up paying regular income tax on stock option gains. Also, stock options do not issue dividends.
Originally posted by e1618978
Kind of poor taste to mention layoffs and private jet use in the same breath. Maybe they had to do it to meet SEC requirements or something.
I had the same thought
I know I was there. We broke even on the deal. What was important to Steve was the 9/10 per share of NeXT stock options transferred to Apple options and we got to keep our jobs, minus HR and Accounting. Redundant departments tend to get axed.
Most of those went to PIXAR.
Being no longer at Apple and a stock holder I see this as a refinement of manufacturering jobs that get reduced as product gets transferred to a separate company contractually. The hiring of employees for Engineering and other vital services are increasing.
I'm thinking of reapplying to the company, though the problem always remains--cost of living cannot exceed cost of earning.
The area is great to start your career but brutal if you aren't in the critical tier where you get paid $100K+ and large stock options. One basically is stuck breaking even and living in an apartment either shacking up with co-workers or the dredded marriage since any sane man wouldn't let their girlfriend move in and save on expenses thanks to you covering them for them, all under the premise of "future marriage." Been there done that. Never again.
Originally posted by TednDi
Apple going public
Apple Stock Value
Pixar going public
Pixar Stock Value
Next Computer founding then subsequent sale to apple
Remember Income tax is approx 40-50%
sale on long term capital gains (stocks held over 1 year) = 15-20%
Take $1. in salary pay .40
Sell $ worth of stock pay .20
Difference in the two methods of compensation .20 then multiply by outrageous number = How steve makes his money.
This doesn't take into account his other investments...
Go steve take it all in perks. Non taxable.
woo hoo!
Originally posted by mdriftmeyer
Scratch off the NeXT reference. That is a breakeven payoff from Apple to cover the debt owed to Canon, Perot and others who helped fund NeXT, originally.
I know I was there. We broke even on the deal. What was important to Steve was the 9/10 per share of NeXT stock options transferred to Apple options and we got to keep our jobs, minus HR and Accounting. Redundant departments tend to get axed.
Most of those went to PIXAR.
Being no longer at Apple and a stock holder I see this as a refinement of manufacturering jobs that get reduced as product gets transferred to a separate company contractually. The hiring of employees for Engineering and other vital services are increasing.
I'm thinking of reapplying to the company, though the problem always remains--cost of living cannot exceed cost of earning.
The area is great to start your career but brutal if you aren't in the critical tier where you get paid $100K+ and large stock options. One basically is stuck breaking even and living in an apartment either shacking up with co-workers or the dredded marriage since any sane man wouldn't let their girlfriend move in and save on expenses thanks to you covering them for them, all under the premise of "future marriage." Been there done that. Never again.
bro i understand what you're saying. sf bay area is one of THE most expensive places in the US to live. i was there 2000-2002. $60,000/year for web design/development (db/webapps kids were pushing $70,80k) the salary compensates for this, but at the same time there are certain lifestyle needs that you have to finance to be able to continue performing at the level that keeps your income sweet.
sure, some of you may say i was a fool to live in nob hill /lower nob hill for $1000+/month in rent, but being new to the USA, i had my reasons
and then by 2002, things were very uncertain economically and safety-wise... you know, the whole "hmm, let's see if my company is mentioned on f8ckedcompany.com today..." tech bust was the knockout blow to SFbay and Sep11 was the nail in the coffin..
i thought i'd got it figured out when i moved to Sydney (the SF of Australia), where i shared a house with a few other people. saved tons on rent (as opposed to getting an apartment myself), had lots of fun, made contacts, but then after a year things with the roommates all went haywire...
so now i am living with my parents in south east asia, where i grew up. but i'm happy and thankful of what i've been able to achieve thus far. i'm 26 now
peace love and all the best to those in the now recovering SF bay area, and home of companies like Pixar and Apple. I know stuff can be rough like tons of PeopleSoft employees being axed.... so take care, my heart goes out to y'all
at least stevie J mentioned somethin in his keynote at the end about spouses and employees and stuff
Originally posted by laurent.g
And now let's look haw microsoft does manage his budgets
or better,
wonder how Bill Gates is crossing the atlantic !?!?
A guy I work with was on a plane with Steve Ballmer and downgraded to coach to sit next to Ballmer. So they aint all spending money on fancy planes.
Originally posted by Scott
A guy I work with was on a plane with Steve Ballmer and downgraded to coach to sit next to Ballmer. So they aint all spending money on fancy planes.
dude, how tF did you get up to 7000+ posts? my fuzzy maths says that's average of 50 posts a day since april 2002....
Originally posted by e1618978
I don't think that this is true - if things work the way I think that they do then you always end up paying regular income tax on stock option gains. Also, stock options do not issue dividends.
Actually, it is true. Stock gains and dividends are taxed at a lower rate than regular income. That's why repulicans love to talk about reducing the capital gains tax. 99% of the population have no clue what they are talking about and the 1% who do love it. Of course, it's always framed as "stimulating investment and spurring the economy".. who would vote against stimulating investment and spurring the economy?.
Stevie did not become a billionaire by being stupid. One of my maxims is to look at what rich people do and try to emulate them (even if you don't know why they doing it). Steve prefers to be paid in stock, then i do too!!.. even if i'm not a tax expert, i know he's not trying to pay more taxes and believe me, he aint in the business of doing favors for apple. If getting paid was cheaper, stevie would get paid. He's not in the charity business.