TMO Reports - Apple Shutters Calif. Desktop Plant Laying Off 235; Releases Statement

by , 10:30 PM EDT, April 13th, 2004

In what appears to be a cost cutting decision, Apple Computer has closed a manufacturing center in Sacramento, Calif. that built desktop Macs and has laid off approximately 235 workers, the company confirmed to The Mac Observer, Tuesday.

"As part of an ongoing effort to make our operations more efficient, Apple is closing its Sacramento manufacturing operation and moving most of its California-based manufacturing activities to a supplier in Southern California," a company statement said. "Employees from various other functions of the company will continue to work in Apple's Sacramento facility and while this action will result in a reduction in operations staff, Apple's overall headcount worldwide continues to grow."

The production center was one of three buildings used by Apple in a business development area of Elk Grove, Calif., which is a suburb of Sacramento. Employees of the center have confirmed Power Mac G5 and eMac desktop computers were being built at the facility. Two remaining buildings will continue to be used by Apple, sources working for the company have confirmed. One building is being used for distribution and warehousing, while another is an Apple call center.

An employee who works in the distribution warehouse in Elk Grove and who asked not to be named, told The Mac Observer that colleagues of his who were laid off at the manufacturing facility were told by superiors that the plant closing was to "cut costs and cut overhead. It was strictly a consolidation decision."

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