TMO Reports - Apple To Cut 148 More Jobs; 7 New Lawsuits To Fight

by , 11:30 PM EDT, May 6th, 2004

Apple Computer will lay off an additional 148 employees before the end of its fiscal year in September, the company disclosed in its second-quarter report filed with the U.S. Securities and Exchange Commission late Thursday. The company also reported seven new lawsuits filed against it, including two additional claims related to alleged faulty iPod batteries.

Apple said the layoffs will take place in Apple's American and European sales and marketing operations only and will cost Apple US$7.7 million.

The layoffs will bring the total number of employees sacked at Apple for the fiscal year 2004 to 348, including 200 people let go last month at a Sacramento, Calif. manufacturing facility. That lay off cost the company $1.9 million in severance costs, the 10-Q filing stated.

Apple said its company management approved the restructuring costs to the tune of $9.6 million last quarter, "primarily related to finalizing the closing of its Sacramento manufacturing operations," the report said.

"Once fully implemented, the Company estimates these restructuring actions will result in reduced ongoing quarterly operating expenses of approximately $6 million," the report stated.

In comparison, Apple laid off 260 positions worldwide in fiscal 2003. The company recorded total restructuring charges of approximately $26.8 million during the year, including approximately $7.4 million in severance costs, a $5 million charge to write-off deferred compensation, $7.1 million in asset impairments and a $7.3 million charge for lease cancellations.

Other interesting developments in the quarterly report, not mentioned in a recent analyst conference call by Apple executives, include: