Job loss fears as Apple axes arms

Mac vendor continues rehabilitation process with closure of two divisions

Apple is expected to close its Advanced Technology and Quality Assurance groups as speculation grew that the manufacturer would be be forced to make another round of redundancies.

As revealed in last week?s PC Dealer (17 September), Apple was tipped to buy the non-Macintosh assets of clone manufacturer Power Computing. Apple is rumoured to be readying Intel-based machines for launch at Mac Expo in January, and allegedly wants Power?s technology and logistics to introduce a high-volume Intel-based range.

As part of this plan, Apple co-founder Steve Jobs is understood to be mooting drastic changes to the company?s strategy. These include the introduction of low-cost Intel or Power PC-based network computers running native Java virtual machines on the Rhapsody operating system. The machines will be aimed at the education and business markets.

Jobs losses are inevitable if the two divisions are to be closed, but a statement from Apple said the company?s first priority is ?redeploying people to different groups?.

Apple has shed over 4,100 staff in the past two years, and analysts claimed that low morale is filtering through to senior management.

Some senior executives are expected to choose to follow outgoing marketing chief Guerrino de Luca, and industry sources believe Jobs? management style will force more VPs out of the company (see Page 8).

The news of the closures came as former Apple OEM partner Exponential announced it would sue the vendor for $500 million, claiming Apple had forced it out of business by axing plans to use Exponential technology in its chips.