Cork core business not to be affected by Apple cutbacks

APPLE, Computers 1,500 Irish staff will not be affected by a new round of job cuts because the company's operations here are …

APPLE, Computers 1,500 Irish staff will not be affected by a new round of job cuts because the company's operations here are regarded as part of its "core business", industry sources said last night. The restructuring plan, expected to be announced later this week, could see over 3,000 layoffs worldwide.

According to newspaper reports in the United States, Apple is on the point of announcing wide ranging changes. These will include reducing the company's operations to three key groups and refocusing on the markets where Apple holds a lead over IBM compatible PCs.

The firm's chief executive, Mr Gilbert Amelio, is also said to be considering sacking up to a quarter of Apple's 13,000 global workforce. The company recorded losses of over $120 million for the quarter ending December 31st. Mr Amelio had planned to stanch Apple's losses by 1996, introduce new products by 1997 and to get the company growing again by 1998.

In Cork yesterday, a spokesman for Apple said the company regarded the reports as "speculative", adding that the firm had a policy of not commenting on such matters.

READ MORE

Industry sources said last night that while a significant restructuring and layoffs would probably take place before the end of the week, this would not have any detrimental effect on the 1,500 strong Cork workforce.

"Cork is Apple's European centre for manufacturing - every Macintosh is put together and, shipped from there - and that is very definitely core business," one source said.

The company would also regards its 200 new research and development staff in Cork as part of an operation essential to Apple's future, thereby protecting their jobs, the source continued.

Other areas, such as the loss making Newton hand held computers, are likely to be slashed, according to observers.