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Apple said to cut some 200 jobs from Beats as acquisition closing date looms

post #1 of 40
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As Apple takes control of Beats Music and Beats Electronics, the Cupertino, Calif. company is said to be paring some 200 jobs from the music software and hardware firm's roster.



According to sources speaking with the New York Post, Apple is culling about 200 Beats employees as part of its $3 billion acquisition, which is set to close on Aug. 1.

"Last week everyone was given an offer from Apple. Some were transitional offers with a set end date," one source said.

As noted by the publication, the 200 employees represent about 40 percent of Beats' global workforce, a substantial downsizing that will likely be filled internally once Apple is in full control of the company.

A separate report from Bloomberg corroborates the claims, saying expected cuts are to come from human resources, finance and other departments that overlap with existing roles at Apple. The publication goes on to say Apple plans to fire the workers after the acquisition is firmly in place.

News of the layoffs was first noted by 9to5Mac.

Apple's Beats buy has been overshadowed as of late by rumors of an impending iPhone refresh. Most recently, the European Commission gave Apple the green light to go forward with the acquisition, noting the two companies' combined market share in the headphone business does not come close to that of competing companies.

Last week, audio giant Bose sued Beats' hardware arm, claiming infringement of patented noise canceling technology. Apple will inherit the lawsuit when it takes over operational control in August.
post #2 of 40

Doooooooooooooooooooooomed!™

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post #3 of 40
I would have much rather read a story where Apple gives 200 Beats employees in obsolete positions a chance to least get hired on at Apple, even if they are support roles and have to move to Cupertino, than simply being shown the door.

That reminds me of slick businessman Steve Castle who would dismantle companies like this before he was diagnosed with boneitis and had to be cryogenically frozen to wait for a cure. The only thing That Guy ever regretted was having boneitis.
Edited by SolipsismX - 7/30/14 at 6:23pm

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post #4 of 40
Quote:
Originally Posted by SolipsismX View Post

I would have much rather read a story where Apple gives 200 Beats employees in obsolete positions a chance to least get hired on at Apple, even if they are support roles and have to move to Cupertino, than simply being shown the door.

That reminds me of slick businessman Steve Castle who would dismantle companies like this before he was diagnosed with boneitis and had to be cryogenically frozen to wait for a cure. The only thing That Guy ever regretted was having boneitis.

I think that Apple is smart enough to offer positions to the Beats employees that could fit well into the needs of the overall company. As with any merger some positions become redundant and it makes no sense, for example, to put a career finance person into a support position as they will leave as soon as they can find another position in finance.

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post #5 of 40
Quote:
Originally Posted by Realistic View Post

I think that Apple is smart enough to offer positions to the Beats employees that could fit well into the needs of the overall company. As with any merger some positions become redundant and it makes no sense, for example, to put a career finance person into a support position as they will leave as soon as they can find another position in finance.

I understand that, but there is a difference between "we can give a severance package or you can take a lower position at Apple right now with or without a pay cut" and "we're letting you go, here's your severance package." I think the moral thing to do is to not push anyone out if you have acquired them and they have been productive for the company you've purchased, no matter how high or low on the scale. I think mass layoffs, like what MS is doing with Nokia in Finland, just taints your brandname.

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post #6 of 40
If the acquisition does not go through, does this mean they have hired all the Beats people that constitute Beats value to Apple? Just wondering!!!
post #7 of 40
Quote:
Originally Posted by DogCowabunga View Post

If the acquisition does not go through, does this mean they have hired all the Beats people that constitute Beats value to Apple? Just wondering!!!

The acquisition will, so the issue is moot.
post #8 of 40

When two companies merge, there will be overlap in functions, typically on the administration side (finance, office management, etc).  It's quite feasible that 40% of the company are these types of people that have duplicate positions at Apple. It would stand to reason that you need to let them go at some point, but there's nothing saying that they couldn't apply to Apple HQ.  The report does say global, so there's a good chance a lot of this is retail presence overseas which would be handled by Apple's logistics and fulfillment.  They probably don't want to move to California, or are no longer needed.

post #9 of 40
Quote:
Originally Posted by SolipsismX View Post


I understand that, but there is a difference between "we can give a severance package or you can take a lower position at Apple right now with or without a pay cut" and "we're letting you go, here's your severance package." I think the moral thing to do is to not push anyone out if you have acquired them and they have been productive for the company you've purchased, no matter how high or low on the scale. I think mass layoffs, like what MS is doing with Nokia in Finland, just taints your brandname.

Its not 20,000 people.  Its 200 people.  Walmart likely has that number weekly.

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post #10 of 40
Quote:
Originally Posted by SolipsismX View Post

I understand that, but there is a difference between "we can give a severance package or you can take a lower position at Apple right now with or without a pay cut" and "we're letting you go, here's your severance package." I think the moral thing to do is to not push anyone out if you have acquired them and they have been productive for the company you've purchased, no matter how high or low on the scale. I think mass layoffs, like what MS is doing with Nokia in Finland, just taints your brandname.

I think its just a fact of the world of business that every business carries the overhead of human resources and accounting employees and that these positions are subject to elimination when two companies combine their businesses. It goes with the job description, just as the promise of additional work is not guaranteed to one who works as a contract employee; when a contract ends, that might be the end of your relationship with the company you contracted with. That sort of thing. I really don't feel there's necessarily a moral obligation in these contexts.
I don't care about what the ignorant masses perceive as truth. I'm concerned with the facts on the ground.
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I don't care about what the ignorant masses perceive as truth. I'm concerned with the facts on the ground.
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post #11 of 40
One can hope that this elimination of jobs includes any in-house legal counsel Beats has on board. That arm of the company clearly didn't do its job to do due diligence on whether Beats was infringing patents when the company incorporated noise cancelation into its products. Someone was sleeping on the job.
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I don't care about what the ignorant masses perceive as truth. I'm concerned with the facts on the ground.
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post #12 of 40
Apple tells 200 employes to Beat it.

Sorry, I couldn't help myself
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post #13 of 40
Definitely sad that people will be let go but the severance is likely to be good.

Also if Beats total # of employees is about 500 then a good chunk of those will have received share options. With the sale price of $3B a lot of the employees will be making a ton of money.
post #14 of 40
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Originally Posted by SpamSandwich View Post
 

Doooooooooooooooooooooomed!™

I'm gonna sue you for using my Doomed™ trademark.   ;)

post #15 of 40
LOL!!! and you apple trolls were bashing ms for 18,000 layoffs just a week ago!! now Apple lays off 200!!!!!!!

WHO'S DOOMED NOW???????????!!!!!!!!!!

Aple Is dooommed!!
post #16 of 40
Quote:
Originally Posted by RadarTheKat View Post

One can hope that this elimination of jobs includes any in-house legal counsel Beats has on board. That arm of the company clearly didn't do its job to do due diligence on whether Beats was infringing patents when the company incorporated noise cancelation into its products. Someone was sleeping on the job.


This allegation has yet to be proven in a court of law. Interesting that Bose only went after Beats once Apple acquired them...

post #17 of 40
Quote:
Originally Posted by SolipsismX View Post

That reminds me of slick businessman Steve Castle who would dismantle companies like this before he was diagnosed with boneitis and had to be cryogenically frozen to wait for a cure. The only thing That Guy ever regretted was having boneitis.
Superb Futurama reference.
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post #18 of 40
All the HR, Accounting and Sales folks tend to be cut. It's common sense.
post #19 of 40
Quote:
Originally Posted by SolipsismX View Post


I understand that, but there is a difference between "we can give a severance package or you can take a lower position at Apple right now with or without a pay cut" and "we're letting you go, here's your severance package." I think the moral thing to do is to not push anyone out if you have acquired them and they have been productive for the company you've purchased, no matter how high or low on the scale. I think mass layoffs, like what MS is doing with Nokia in Finland, just taints your brand-name. 

You are placing a lot of trust in how this is going down based on an article posted on basically a rumor site not known for accuracy or investigative reporting.

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post #20 of 40
Quote:
Originally Posted by Realistic View Post

Quote:
Originally Posted by SolipsismX View Post

I understand that, but there is a difference between "we can give a severance package or you can take a lower position at Apple right now with or without a pay cut" and "we're letting you go, here's your severance package." I think the moral thing to do is to not push anyone out if you have acquired them and they have been productive for the company you've purchased, no matter how high or low on the scale. I think mass layoffs, like what MS is doing with Nokia in Finland, just taints your brand-name. 
You are placing a lot of trust in how this is going down based on an article posted on basically a rumor site not known for accuracy or investigative reporting.

But Bloomberg isn't a rumour site:

http://www.bloomberg.com/news/2014-07-30/apple-said-to-cut-200-jobs-at-beats-after-acquisition.html

Though they did prematurely publish Steve's obituary, so much for fact checking:

http://www.cnet.com/news/bloomberg-mistakenly-publishes-steve-jobs-obituary/
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post #21 of 40
Quote:
Originally Posted by DogGone View Post

Definitely sad that people will be let go but the severance is likely to be good.

Also if Beats total # of employees is about 500 then a good chunk of those will have received share options. With the sale price of $3B a lot of the employees will be making a ton of money.

That's probably exactly the reason their new contracts have end dates and are not immediately terminated. This always happens when companies are taken over. It's not Gordon Ghekko - stripping for parts.

The fact is the administration of mid tier companies can be fairly heavy compared to
Companies like Apple. If Apple needed 200 new administration (or sales ) staff it would have hired them. Instead it realises it can handle this integration with the existing staff
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post #22 of 40

I have only listened to a couple of Beat products... but they all sound crap. Big changes are needed. Tim is great with these things.

post #23 of 40
Quote:
Originally Posted by RadarTheKat View Post

One can hope that this elimination of jobs includes any in-house legal counsel Beats has on board. That arm of the company clearly didn't do its job to do due diligence on whether Beats was infringing patents when the company incorporated noise cancelation into its products. Someone was sleeping on the job.

By that logic, Apple should fire its own legal counsel. Perhaps Apple should keep Beat's legal counsel instead as it is getting sued far less. Further, last I checked Beats has not been found guilt of patent infringement.
post #24 of 40
So who are the people Apple is keeping? Does Beats have a lot of hardware engineers or are they mostly people working on the streaming music app? The headphone designs were done by a 3rd party design firm (which said its work would be transitioning to Apple's design team).
post #25 of 40

Software companies tend to allow such employees to apply for open positions giving them priority (or try to find a good fit) whereas possible. Those that do not make the cut usually get shown the door. Sometimes people that lose their job are skilled employees but their skills are not a good fit.

post #26 of 40
Maybe they're dropping Dr Dre's Entorauge.

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post #27 of 40
Quote:
Originally Posted by SpamSandwich View Post
 

Doooooooooooooooooooooomed!™

 

These are real people losing real jobs.

 

Some of your ineccsant brainless comments on these AI articles suggest you really need to be somewhere else !!!

post #28 of 40
Quote:
Originally Posted by mdriftmeyer View Post

All the HR, Accounting and Sales folks tend to be cut. It's common sense.

Agreed (for the first 2).   HR is totally superfluous, and as soon as the financial due diligence is done, it's easily transferred.

If Apple is leaving the sales channels, then the sales force is usually kept on...  Apple probably doesn't have reach into some of the retailers Beats does... however, the big box overlap... Apple staff takes that over (and most sales people would leave anyway... my guess is Beats had a higher commission rate anyway).

 

You'll see another group go in the 2nd round of layoffs, likely 2-6 months afterwards (IT, purchasing, admin, etc), as 'keeping the lights on' work is transisitioned to the mother ship.

Quote:
Originally Posted by DogCowabunga View Post

If the acquisition does not go through, does this mean they have hired all the Beats people that constitute Beats value to Apple? Just wondering!!!

If it doesn't go through, officially nothing should change.

 

 does go through, They wanted Jimmy and Dre, talent and label management, and likely some IP ... 

 

Quote:
Originally Posted by SolipsismX View Post
I think the moral thing to do is to not push anyone out if you have acquired them and they have been productive for the company you've purchased, no matter how high or low on the scale.

<ronald reagan voice>

   There you go again, thinking that corporations have to be moral.

</rrv> 

 

They have to be profitable...

 

everything else is just gravy.


Edited by TheOtherGeoff - 7/31/14 at 6:51am
post #29 of 40
Quote:
Originally Posted by SolipsismX View Post

I would have much rather read a story where Apple gives 200 Beats employees in obsolete positions a chance to least get hired on at Apple, even if they are support roles and have to move to Cupertino, than simply being shown the door.

 

And who knows - maybe Apple will give them a chance.  But there's nothing in the least bit wrong with letting people go you don't need.  It's also commendable for a business to treat people like people and try to do a reasonable amount to make the transition as minimally jarring as possible.  I both applaud companies that are sensitive to employees they have to let go, and question the understanding of the business world of anyone has who implies or says that companies are somehow wrong for cutting jobs that are no longer needed (not saying that you're saying that - but it always seems like there's someone who cries foul whenever there's a story about a company doing appropriate streamlining that involves cutting positions).

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post #30 of 40
Quote:
Originally Posted by prokip View Post
 

 

These are real people losing real jobs.

 

Some of your ineccsant brainless comments on these AI articles suggest you really need to be somewhere else !!!

Its 200 people!!!!!  This shouldn't even make the news!

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post #31 of 40
Quote:
Originally Posted by Andysol View Post

Jesus - Gonna delete it, sorry Andysol. I was soooo wrong here.

EDIT: of course people already saw what I posted over email notification. Please excuse me for my err.

probably the most edited post in history this one...
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post #32 of 40
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Originally Posted by PhilBoogie View Post

Jesus - Gonna delete it, sorry Andysol. I was soooo wrong here.

EDIT: of course people already saw what I posted over email notification. Please excuse me for my err.

probably the most edited post in history this one...

We all make mistakes. Misread, misunderstand, jump to conclusions, etc, etc, but it takes a big man to admit them.
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post #33 of 40
Quote:
Originally Posted by PhilBoogie View Post


Jesus - Gonna delete it, sorry Andysol. I was soooo wrong here.

EDIT: of course people already saw what I posted over email notification. Please excuse me for my err.

probably the most edited post in history this one...

I have no clue what you posted- or what was edited.  But no- I don't accept your apology.  I will hate you until the end of days! :D

 

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post #34 of 40
Quote:
Originally Posted by dasanman69 View Post

Quote:
Originally Posted by PhilBoogie View Post

Jesus - Gonna delete it, sorry Andysol. I was soooo wrong here.

EDIT: of course people already saw what I posted over email notification. Please excuse me for my err.

probably the most edited post in history this one...

We all make mistakes. Misread, misunderstand, jump to conclusions, etc, etc, but it takes a big man to admit them.

Thank you
Quote:
Originally Posted by Andysol View Post

Quote:
Originally Posted by PhilBoogie View Post

Jesus - Gonna delete it, sorry Andysol. I was soooo wrong here.


EDIT: of course people already saw what I posted over email notification. Please excuse me for my err.


probably the most edited post in history this one...
I have no clue what you posted- or what was edited.  But no- I don't accept your apology.  I will hate you until the end of days! 1biggrin.gif



Even without knowing what that movie is about... LOL

I did however saved the text I posted, so just holler if you'd like a PM. I will, obviously, explain myself after pasting in that stupid post.
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post #35 of 40
Originally Posted by prokip View Post
These are real people losing real jobs.

 

Whoop de doo.

 
Some of your ineccsant brainless comments on these AI articles suggest you really need to be somewhere else !!!

 

[insert any comment whatsoever about the fact that the labor force participation rate is 62.3%, making Apple’s reduction of redundancy look meaningless in comparison and calling into question why you think companies should be making terrible decisions to fix the terrible decisions made already]

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post #36 of 40
This is completely normal cost synergies from most acquisitions in the business world. Administrative roles are almost always overlapped when two companies get together.

Brace yourselves...evil Apple posts coming.
post #37 of 40
In related news Apple just completed the purchase of another 13% of Beats they had not already bought, paying off Vivendi/Universal Music Group to the tune of $400M. Apparently there's still a few other shares out in the wild too but expected to be acquired over the next few weeks.
melior diabolus quem scies
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post #38 of 40
Quote:
Originally Posted by Gatorguy View Post

In related news Apple just completed the purchase of another 13% of Beats they had not already bought, paying off Vivendi/Universal Music Group to the tune of $400M. Apparently there's still a few other shares out in the wild too but expected to be acquired over the next few weeks.

If the acquisition can be leveraged to damage Samsung in any way I'm all for it.

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post #39 of 40
Quote:
Originally Posted by SolipsismX View Post


I understand that, but there is a difference between "we can give a severance package or you can take a lower position at Apple right now with or without a pay cut" and "we're letting you go, here's your severance package." I think the moral thing to do is to not push anyone out if you have acquired them and they have been productive for the company you've purchased, no matter how high or low on the scale. I think mass layoffs, like what MS is doing with Nokia in Finland, just taints your brandname.

This is what I meant by trusting an AI article so easily.

 

Posted on AI 08/01/14

Apple spokesman Tom Neumayr issued a statement yesterday saying much the same.

"We're excited to have the Beats team join Apple, and we have extended job offers to every Beats employee," Neumayr said in a prepared statement sent out to various news outlets yesterday. "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."
 

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post #40 of 40
Quote:
Originally Posted by Realistic View Post

This is what I meant by trusting an AI article so easily.

Posted on AI 08/01/14
Apple spokesman Tom Neumayr issued a statement yesterday saying much the same.

"We're excited to have the Beats team join Apple, and we have extended job offers to every Beats employee," Neumayr said in a prepared statement sent out to various news outlets yesterday. "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."

 

I don't trust the rumours insofar as to think they are canon, but I do respond with how I would feel if they do they turn out to be truthful.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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