Apple Cuts 174 Elk Grove Jobs

by , 8:10 AM EDT, May 2nd, 2008

Apple issued layoff notices to 174 employees from its Elk Grove, California, location on Thursday. The affected employees are being given the opportunity to transfer to the Mac, iPod and iPhone maker's Austin, Texas, offices or apply for other jobs at the Elk Grove facility, according to The Sacramento Bee.

Of the 174 job cuts, 99 were Internet sales representatives, and 41 were online customer chat positions. Apple said the positions were eliminated because it is moving some of its sales and support functions to its Texas offices.

Colliers International research director Garrick Brown called the move "just more bad news for Elk Grove," and added "It sure seems like they continue to face challenges down there on all fronts."

The job cuts are bad news for what some are seeing as tough times for Elk Grove, but Mayor Gary Davis feels his community is holding its own on the economic front, citing a new mall due to open next year, and a new hospital set to begin construction. "There is a significant amount of economic activity occurring now," he said.

That's not much consolation, however, for the 174 employees that got the surprise news yesterday. Several were seen carting belongings to their cars and consoling each other in the parking lot.

One former employee told a friend "I don't have a job."