Apple laying off 50 sales staff due to economy, enterprise

[AppleInsider]

After making itself appear impervious to economic conditions, Apple has reportedly shown 50 enterprise sales workers the exit in a low-key move that refocuses the company.

The Mac maker is said by CNET News to have kept quiet and let go of some Cupertino-based employees, as well as a whole sales division in Austin, by bringing the affected employees into meeting rooms last week and giving them the notices with security guards in tow.

In both cases, the layoffs took place for "business and economic reasons," though these aren't tied to poor sales or any other systemic problems within the group itself. Instead, they centered on a shift in Apple's strategy for its enterprise sales. Since putting former Americas reseller head John Brandon at the front of the division, the company has reduced the demand on its own end by giving Ingram Micro and other resellers the bulk of the responsibility for pitching Macs to businesses.

The company also didn't preclude any of those facing a forced departure and has offered them the chance to be rehired within Apple.

Even so, Apple has been particularly cautious about mentioning the staff reductions despite an economy where layoffs have been commonplace: both after early, unverified rumors and the most recent report, Apple spokes people have publicly declined to comment rather than acknowledge the headcount change.

The hesitation to report the maneuver is believed to stem both from Apple's historically secretive attitude as well as investors that are already extremely sensitive to any signs of doubt. Apple has rarely disclosed more about its employees than legally required and was only pressured into making statements on Steve Jobs' health after his medical leave made the announcement necessary. As the number of layoffs in the enterprise sales division wasn't large enough to require a public announcement, Apple is thought to have taken the same approach as for Jobs and kept silent in hopes that shareholders wouldn't take notice.

While such a claim would be difficult to verify on its own, Apple is already known to have been taking great pains to avoid laying off staff even when the full impact of the economic crisis became evident late last year. At retail, the company has reduced employee hours, made Creative and Studio workers multitask, and otherwise sought ways to cut costs without conspicuous layoffs or pay rate drops.

As such, cuts within internal groups like the enterprise branch -- as well as unverified rumors of cuts in the Mac hardware group -- are expected to be particularly sore points for Apple.

[xSamplex]

What is that, $7M or $8M with benefits? Sound more like getting rid of deadwood than an economic choice for a company the size of Apple.

[Buck]

Alright, they're only laying off 50 people. What's all the fuss about?! They're not going to save any money and it's probably just a restructuring. Random people get fired every day... don't they?

[lkrupp]

Originally Posted by Buck

Alright, they're only laying off 50 people. What's all the fuss about?! They're not going to save any money and it's probably just a restructuring. Random people get fired every day... don't they?

No, no. This is about finding an excuse, any excuse, to label Apple as a failing company. C|net is pushing this big time. It won't be long before somebody slaps the "beleaguered" moniker on Apple once again. For some reason most tech news sites can't stand the idea of a healthy and profitable Apple, Inc. Apple's success irks them to no end. They can't understand why people buy Apple products even though they are priced higher than the "standard" hardware. Tech news pundits are constantly looking for, or trying to manufacture, negative news when it relates to Apple. They want the company to fail because it doesn't conform to their ideas of how the world works.

[Cubert]

This was reported on late last week and was flatly denied by Apple. I think it was on MacDailyNews but I'm not sure.

[Galley]

Whew! At first I thought it was 50%.

[jpellino]

"After making itself appear impervious to economic conditions,"

Exactly how did they make themselves look impervious?

Or are you merely editorializing (that's French for "making stuff up").

[Gyokuro]

-- as well as unverified rumors of cuts in the Mac hardware group -- are expected to be particularly sore points for Apple.

The same "hardware group" that brought us such an exciting recent release of same-old, same-old?

[Virgil-TB2]

This is a very odd sentence:

Originally Posted by AppleInsider

The company also didn't preclude any of those facing a forced departure and has offered them the chance to be rehired within Apple.

If a sentence it may be.

I think you need to replace "and has offered them the chance to be" with "from being".

[columbus]

I hope they are not laying people off on the Mac hardware side, as I feel they need more staff, not less, particularly in the area of QA.

It hardly seems Apple is able to ship a product with some sort of defect, some which affect a good percentage of machines and some quite serious:
- cracking cases
- warped cases
- thin grey lines across screens
- faulty graphics card
- trackpads not registering clicks
- cracked hinges
- case discoloration
- thermal problems and core shutdowns
- DVI adaptors not working
- random shutdowns
- flakey wifi

By anyone's estimations that is quite a list for the last couple of few years. I appreciate some things are unavoidable and computers are inherently complex, but I have doubts about whether there is enough focus on QA.

[anantksundaram]

50/32,000 = 0.0015625

[rnp1]

[QUOTE=AppleInsider;1387488

The Mac maker is said ... to have kept quiet and let go of some Cupertino-based employees.... by bringing the affected employees into meeting rooms last week and giving them the notices with.... !!!!security guards in tow!!!!......[/QUOTE]

HEY DON"T GET UPSET IF YOU LOSE YOUR JOB HERE! YOU ARE SHUFFLED OUT THE BACK DOOR BY AN ARMED MONKEY!!!!NUMBER ONE COMPANY TO WORK FOR???? (Puts a new meaning to the word, 'fired'. Didn't this sort of behavior lead to the demise of Saddam Hussein? I never guessed that Al Gore has a Mac as protection from the Bill Clinton disappearance team. Yes, John Scully did sit next to Hilary at Bills' first State of the Union!)

[mariofreak85]

Originally Posted by rnp1

HEY DON"T GET UPSET IF YOU LOOSE YOUR JOB HERE! YOU ARE SHUFFLED OUT THE BACK DOOR BY AN ARMED MONKEY!!!!NUMBER ONE COMPANY TO WORK FOR???? (Puts a new meaning to the word, 'fired'. Didn't this sort of behavior lead to the demise of Saddam Hussein? I never guessed that Al Gore has a Mac as protection from the Bill Clinton disappearance team. Yes, John Scully did sit in the front row at Bill inauguration!)

I work at Cisco, and with all of the layoffs we now have at least one security guard at the entrance every building.

[drblank]

I don't know, most of the time I am on Apple's side, but when it comes to laying people off when Apple is financially solid doesn't seem right. The sales force is what keeps the contact with the customer base. Yes, maybe times are tough, but Apple also dropped the XRaid line of storage systems which is a part of Enterprise Sales and they haven't kept up to date with the XServes nor have they really done anything to spearhead Enterprise class software.

I think Apple should retain these people as much as possible and let them continue working for Apple, but maybe in a different capacity whenever possible. Maybe they might be able to at least work at an Apple Store, work in marketing, or learn to do something else within the company so that Apple doesn't have to spend additional money rehiring another person.

Companies that are stronger usually do whatever they can to retain employees, especially the outbound sales force. Internal sales force if the call load isn't there, that's another story, but still it is always sad to see people go because it just sends a bad message and the people can't always get a job in 60 days even though they only get 60 days base pay for being laid off.

This is only going to affect the bottom line by maybe $7 or $8 Mil, which is chump change for Apple. They could easily cut some salaries and save that money or cut expenses.

[rnp1]

Originally Posted by mariofreak85

I work at Cisco, and with all of the layoffs we now have at least one security guard at the entrance every building.

I guess that makes it okay then for the number one rated company to work for, with the best reputation for quality to have deteriorated to this! Wouldn't it be better to do a security check on perspective employees and keep the hiring down to pleasant, dedicated people, who would be courteously advised at least a month before being terminated. So they don't lose it in a private meeting from a cold manager who prefers to use a PC at home. Those 'smart' managers who were hired by Apple because they know how to 'handle' people!!!

[Switchers (Chief Editor)]

Originally Posted by xSamplex

What is that, $7M or $8M with benefits? Sound more like getting rid of deadwood than an economic choice for a company the size of Apple.

Deadwood? A whole sales division in Austin? In that case we can expect another layoff... the head of Apple's HR department.

[cameronj]

Originally Posted by Virgil-TB2

This is a very odd sentence:
If a sentence it may be.

I think you need to replace "and has offered them the chance to be" with "from being".

Yeah, you know, words are hard.

[cameronj]

Originally Posted by rnp1

I guess that makes it okay then for the number one rated company to work for, with the best reputation for quality to have deteriorated to this! Wouldn't it be better to do a security check on perspective employees and keep the hiring down to pleasant, dedicated people, who would be courteously advised at least a month before being terminated. So they don't loose it in a private meeting from a cold manager who prefers to use a PC at home. Those 'smart' managers who were hired by Apple because they know how to 'handle' people!!!

Jesus christ, what are you smoking?

[rnp1]

Originally Posted by Switchers (Chief Editor)

Deadwood? A whole sales division in Austin? In that case we can expect another layoff... the head of Apple's HR department.

Are you serious? The HR guys call the shots...they probably have everyone documented in Excel spreadsheets on their Dell PCs. I think their jobs are safer than anybodys. But you are right-Apple should keep the people it trains so extensively and find other ways to trim. How bout the legal department??

[rnp1]

Originally Posted by cameronj

Jesus christ, what are you smoking?

Jesus doesn't smoke anything, but I did. It was Al Gores favorite blend too!

[SpamSandwich]

The Mac maker is said by CNET News to have kept quiet and let go of some Cupertino-based employees, as well as a whole sales division in Austin, by bringing the affected employees into meeting rooms last week and giving them the notices with security guards in tow.

Why were some of the employees "Cupertino-based", yet the Texans were not "Austin-based"? You guys are just messin' with us now, aren't you?

[cameronj]

Originally Posted by rnp1

Jesus doesn't smoke anything, but I did. It was Al Gores favorite blend too!

So you expect a company to be able to hire only people who won't be upset when they lose their job?

[rnp1]

Originally Posted by cameronj

So you expect a company to be able to hire only people who won't be upset when they lose their job?

Well seriously Cam, if Apple has to lay off these people, they can do it in a way that doesn't require such threatening security. As I mentioned yesterday, Apple wouldn't dare upset the customers by having cameras near the front of the store, or allow any employee to challenge a customer who puts a FCP box into their empty baby carriage. Yet they let employees go as soon as they get to work and accompany them out the back door with a pair of ex 'KJB' agents with Smith&Wesson snub nose hand guns strapped to their chests. This is no way to treat someone who loves what Apple has created since Steve left Portland for his adopted parents' garage and his sister sorting chips, while Woz did all the tek work. ( Now, in truth, I smoked the same stuff Steve did, sometimes in the same place. But that was nearly four decades ago.)

[solipsism]

Originally Posted by rnp1

Well seriously Cam, if Apple has to lay off these people, they can do it in a way that doesn't require such threatening security. As I mentioned yesterday, Apple wouldn't dare upset the customers by having cameras near the front of the store, or allow any employee to challenge a customer who puts a FCP box into their empty baby carriage. Yet they let employees go as soon as they get to work and accompany them out the back door with a pair of ex 'KJB' agents with Smith&Wesson snub nose hand guns strapped to their chests. This is no way to treat someone who loves what Apple has created since Steve left Portland for his garage and his sister sorting chips.( Now, in truth, I smoked the stuff Steve did, sometimes in the same place. But that was decades ago.)

First of all, if security is strapped I'm sure it's part of their uniform, not something that they added their person for the escort out of the building.

Second, escorting ex-employees out of a building and revoking their access is standard practice. It's too easy for ex-employees to get make poor decisions after being let go. Not that it would be a common thing, but it only takes one to make security a necessary precaution.

Lastly, we don't know about the situation and since it's only 50 employees and their job is being done by an outside firm (as opposed to letting a 1000 people go from all over the company so that all departments still function albeit with less people) points to a layoff that isn't the typical downsizing being seen elsewhere.

On top of that, we don't know what sort of severance pay they received. I once got was laid off from a company because that department was closing and the rest of the company wasn't hiring nor was fit for my skills. I received 6 months of severance plus $5000 bonus plus my unused holiday pay paid out in a nifty lump sum. I wasn't complaining!

[Switchers (Chief Editor)]

Originally Posted by rnp1

Are you serious? The HR guys call the shots...they probably have everyone documented in Excel spreadsheets on their Dell PCs. I think their jobs are safer than anybodys. But you are right-Apple should keep the people it trains so extensively and find other ways to trim. How bout the legal department??

Yes, I am serious because if I was to work for Apple, which I'm not, and I had hired and trained 50 people and had to let them go for anything else than economic reasons... I would be next. In fact I would make that decision myself... before others tell me to go look for a new job - not only will that show others that you take your responsibilities seriously, but it will also look better on your Curriculum.

[rnp1]

[QUOTE=solipsism;1387607]"First of all, if security is strapped I'm sure it's part of their uniform, not something that they added their person for the escort out of the building.
Second, escorting ex-employees out of a building and revoking their access is standard practice. It's too easy for ex-employees to get make poor decisions after being let go. Not that it would be a common thing, but it only takes one to make security a necessary precaution."

This mentality is really a problem. Just because some Prozac dosed postal employees went nuts a few years back, it has become "standard practice" to do this. Do we really live in South America? Why not frisk every employee and set up a metal detector at the door? This has gotten completely out of control. Just you wait until all the banks shut their doors and the malls are all closed like Circuit City!
I always thought the Brady bill was a great idea!
(You did know that the guy who shot Mr. Brady was George HW Bushs' friend Hinckly Sr.s' son-he just knicked his main target, because Nancy made Ronnie put on that 'silly' kevlar vest as she didn't trust the xCIA VP!)

[cameronj]

Originally Posted by rnp1

Well seriously Cam, if Apple has to lay off these people, they can do it in a way that doesn't require such threatening security. As I mentioned yesterday, Apple wouldn't dare upset the customers by having cameras near the front of the store, or allow any employee to challenge a customer who puts a FCP box into their empty baby carriage. Yet they let employees go as soon as they get to work and accompany them out the back door with a pair of ex 'KJB' agents with Smith&Wesson snub nose hand guns strapped to their chests. This is no way to treat someone who loves what Apple has created since Steve left Portland for his adopted parents' garage and his sister sorting chips, while Woz did all the tek work. ( Now, in truth, I smoked the same stuff Steve did, sometimes in the same place. But that was nearly four decades ago.)

Have you never been part of a large corporation? What Apple is doing is totally standard!

[cameronj]

Originally Posted by rnp1

This mentality is really a problem. Just because some Prozac dosed postal employees went nuts a few years back, it has become "standard practice" to do this. Do we really live in South America? Why not frisk every employee and set up a metal detector at the door? This has gotten completely out of control. Just you wait until all the banks shut their doors and the malls are all closed like Circuit City!
I always thought the Brady bill was a great idea!
(You did know that the guy who shot Mr. Brady was George HW Bushs' friend Hinckly Sr.s' son-he just knicked his main target, because Nancy made Ronnie put on that 'silly' kevlar vest as she didn't trust the xCIA VP!)

You're clueless, or trolling. Time to click the ignore button.

[Adjei]

Apple is doomed.

[rnp1]

Originally Posted by Switchers (Chief Editor)

Yes, I am serious because if I was to work for Apple, which I'm not, and I had hired and trained 50 people and had to let them go for anything else than economic reasons... I would be next. In fact I would make that decision myself... before others tell me to go look for a new job - not only will that show others that you take your responsibilities seriously, but it will also look better on your Curriculum.

I appreciate your ethical and responsible position. Two qualities that have been eliminated from any 'promising' executives' resume of late, I fear!

[solipsism]

Originally Posted by rnp1

This mentality is really a problem. Just because some Prozac dosed postal employees went nuts a few years back, it has become "standard practice" to do this. Do we really live in South America?

This isn't just about people killing other people. It's about stealing company property, too. It's quite common when people think they have a job, imagine when they don't. As for actual violence in the workplace, your assertion that it last happened several years back is far from the the truth. I have a friend who works at the HQ of a grocery store where it happened not a month ago.

PS: I don't know what S. America has to do with anything.

[rnp1]

Originally Posted by cameronj

You're clueless, or trolling. Time to click the ignore button.

Clueless! Look Cam, not only did we rent a house near Reed college a long time ago,when our fearless leader was an much younger Appler-to-be, but I had a conversation with George HW Bush many years back. I was very scared at the time and have tried to lay low since. As far as trolling, I prefer to use a fly.

[rnp1]

Originally Posted by solipsism

This isn't just about people killing other people. It's about stealing company property, too. It's quite common when people think they have a job, imagine when they don't. As for actual violence in the workplace, your assertion that it last happened several years back is far from the the truth. I have a friend who works at the HQ of a grocery store where it happened not a month ago.

PS: I don't know what S. America has to do with anything.

I'm sorry-which Frontline program did you miss?
Oh gee, Columbia for example. America is not yet a Police State. The more guns there are, the more people are using guns. Since when should industrial secrets and company property taken by employees who are fired should be handled with fire arms????!!! What country am I living in? We have come a long way baby!

[solipsism]

Originally Posted by rnp1

Since when should industrial secrets and company property taken by employees who are fired should be handled with fire arms????

Either you are trolling or are uncommonly obtuse. Your assumption that security strapped themselves just to escort the former employees is foolish, at best. If your uniform is to wear a weapon you don't take it off willy nilly. Your comments make it sound like they walked into a conference room where these unexpected employees were being kept and pulled their weapons telling them to get out of the building and never come back. Regardless of what you want to believe there are plenty of businesses that have armed personal to protect the employees and the company's property.

[rnp1]

Originally Posted by solipsism

Either you are trolling or are uncommonly obtuse. Your assumption that security strapped themselves just to escort the former employees is foolish, at best. If your uniform is to wear a weapon you don't take it off willy nilly. Your comments make it sound like they walked into a conference room where these unexpected employees were being kept and pulled their weapons telling them to get out of the building and never come back. Regardless of what you want to believe there are plenty of businesses that have armed personal to protect the employees and the company's property.

It sounds like you may have a military background. To always place a 'guard' into a common situation, is the real mistake.It sets up a disrespectful atmosphere which breeds further hostilities. So as a supporter of using arms for control, I guess your point of view can never be changed. Once you go down that road, all this stuff seems correct and proper."Those who live by the sword shall die by the sword". I guess my naive background gives me false hope that somehow we can accomplish a positive future based on communication, rather than distrust and the belief that everybody is out to get you. I don't believe there would be 6 billion people on the planet today, if we were not eventually able to solve our problems through working things out by agreement, rather than by force. I fear that kind of control has taken control and common sense has become a mere tool of the true controller(s).

[iPeon]

AI should lay off publishing "dramatization" type style reports. It's getting stinky in here. Why do reporters feel need to give their opinion? We could care less about opinions. Facts is what we want. Real facts, not opinionated "facts." Come on!

[MacTel]

Originally Posted by Buck

Alright, they're only laying off 50 people. What's all the fuss about?! They're not going to save any money and it's probably just a restructuring. Random people get fired every day... don't they?

I believe Apple should and will license OSX Server to OEMs. Every Mac product has been updated including the xServe except it wasn't publicly announced. Apple hasn't put much effort into the enterprise market and it shows. Have Dell, HP, Gateway, IBM, Lenovo, and every small time server OEM build, market, and add value to the OSX Server solution.

[sflocal]

Originally Posted by rnp1

It sounds like you may have a military background. To always place a 'guard' into a common situation, is the real mistake.It sets up a disrespectful atmosphere which breeds further hostilities. So as a supporter of using arms for control, I guess your point of view can never be changed. Once you go down that road, all this stuff seems correct and proper."Those who live by the sword shall die by the sword". I guess my naive background gives me false hope that somehow we can accomplish a positive future based on communication, rather than distrust and the belief that everybody is out to get you. I don't believe there would be 6 billion people on the planet today, if we were not eventually able to solve our problems through working things out by agreement, rather than by force. I fear that kind of control has taken control and common sense has become a mere tool of the true controller(s).

You're not trolling. You're just being incredibly naive and clueless. In your idealistic world where unicorns roam free, everyone is a go-happy camper with not a care in the world. In this world where we will call it "reality" for the time being, how may incidents have made the news where laid-off/fired employees went ballistic on their employers? Some were obvious crackpots, others only needed a trigger to cause damage to people or property (physical or intellectual).

And the results of those incidents? People scream bloody murder as to why proper security was lacking during these times. So while your heart bleeds for the treatment that these unfortunate souls received, I'd bet money that you would also be the first person to get on your high-chair and whine as to how those people were able to commit a violent act and the company was not able to protect the innocent victims.

It only takes one person to cause the damage and companies have to be prepared to act on the worst case scenario..

The guards may have been armed as their duties require, but I seriously, seriously doubt the ex-employees were treated like gestapo guests as you are implying with guns drawn and fingers on the trigger. They were most likely treated with respect and quietly walked to the door. People working in that kind of company environment should never take it personally.

Sheesh... get over yourself Hanoi Jane.

[hezekiahb]

Originally Posted by rnp1

HEY DON"T GET UPSET IF YOU LOOSE YOUR JOB HERE! YOU ARE SHUFFLED OUT THE BACK DOOR BY AN ARMED MONKEY!!!!NUMBER ONE COMPANY TO WORK FOR???? (Puts a new meaning to the word, 'fired'. Didn't this sort of behavior lead to the demise of Saddam Hussein? I never guessed that Al Gore has a Mac as protection from the Bill Clinton disappearance team. Yes, John Scully did sit next to Hilary at Bills' first State of the Union!)

I believe it is actually standard in any work environment (that has full time security staff) for individuals to be escorted off the premises by security. They don't do it to be mean, they do it to protect everyone employed there, some people snap when they get let go.

It's also common practice for security to be present when those individuals turn over any work property.

[rnp1]

Originally Posted by sflocal

You're not trolling. You're just being incredibly naive and clueless. In your idealistic world where unicorns roam free, everyone is a go-happy camper with not a care in the world. In this world where we will call it "reality" for the time being, how may incidents have made the news where laid-off/fired employees went ballistic on their employers? Some were obvious crackpots, others only needed a trigger to cause damage to people or property (physical or intellectual).

And the results of those incidents? People scream bloody murder as to why proper security was lacking during these times. So while your heart bleeds for the treatment that these unfortunate souls received, I'd bet money that you would also be the first person to get on your high-chair and whine as to how those people were able to commit a violent act and the company was not able to protect the innocent victims.

It only takes one person to cause the damage and companies have to be prepared to act on the worst case scenario..

The guards may have been armed as their duties require, but I seriously, seriously doubt the ex-employees were treated like gestapo guests as you are implying with guns drawn and fingers on the trigger. They were most likely treated with respect and quietly walked to the door. People working in that kind of company environment should never take it personally.

Sheesh... get over yourself Hanoi Jane.

THERE YOU GO!!! "PROPER SECURITY "!!!!! Bang you're dead. There goes the Constitution! David Rockafeller and Henry Kisninger always say that document just gets in the way of home land security. ("W" suggested it be called "FatherLand Security", but Cheney nixed it, reminding George who his father is!)
Oh and the reason all the Unicorns are gone is because manly hunters like you took out the biggest and the best as trophies, leaving the remaining homosexual subordinates to be eaten by the hungry females. No more reproductive rights! Rocky wins again, with helpers like you.
And back in those Hanoi days, when many of our 18-25 year old friends were killed and maimed to further the goals of a few multinationals, and the likes of Richard M Nixon- Steve and I would have gone to prison before being forced to carry a gun, let alone use one. But in defense of SJ, and Apple policy, your values do change when you get stabbed in the back by people you trusted, like Bill Gates-but he is a mighty fine poker player!