Apple cuts back to the core

Drastic restructuring sees major product lines and workforce slashed as vendor focuses on graphics and education markets

Apple is to ditch existing technologies such as Open Doc and Cyberdog and pull out of the retail market in a desperate attempt to retrench itself to its core competencies.

The massive restructure was announced by Apple CEO Gil Amelio, as the manufacturer slashed its product lines to focus its efforts on the graphics and education markets.

Products given the chop included Performas, Open Doc component software technology, Cyberdog, Open Transport, Game Sprockets and Mac OS development tools. The move reinforced Apple?s commitment to the technology acquired when it bought Next Software.

Apple will cut 30 per cent of its workforce ? about 4,100 jobs, including 2,700 full-time and 1,400 contract and temporary workers. The layoffs are expected to cost the manufacturer $155 million. It had previously announced a projected loss of $325 million relating to the Next purchase.

It is not yet known how many UK staff are to lose jobs. Apple Europe will bear the proportional brunt of the cuts, losing 35 per cent of its workforce. Jan Larsen, president of Apple Europe, said cuts would occur in back office sectors, such as human resources and finance.

Larsen said Apple would focus on its ?loyal, installed customer base. We want to focus heavily on our joint education channel [Xemplar with Acorn] and Apple Centres in the UK. I will do whatever I can not to lose Apple Centres.?

Apple?s anticipated turnover for the second quarter, ended 31 March, is between $1.6 billion and $1.7 billion, nearly $250 million less than Wall Street?s expectations.