Apple Unveils Core Of Restructuring Plan

Apple Computer Inc. on Tuesday outlined part of its latest restructuring plan, a corporate reshuffle intended to let the troubled computer pioneer focus on its strengths.

But Apple would not disclose how many employees would lose their jobs as it tries to stem a stubborn flood of red ink. Executives said that and other details of its reorganization were still being worked out and wouldn’t be announced for another month.

The company previously said that layoffs would be part of its make-over. Industry analysts have expected cuts of up to 3,000, or a fifth of Apple’s work force.

Apple also has not yet decided whether to shed or scale back on such money-losing businesses as its Newton hand-held computer and Pippin, a combination game player and Internet surfer being sold in Japan.

In its second structural shake-up within a year, Apple is consolidating its product development, marketing, sales and operations. Previously Apple’s business units resembled separate companies with their own marketing and technology activities.

Meanwhile, Apple’s new sales division will emphasize the consumer, publishing and education markets, areas in which Apple remains strong despite its declining overall market share.

“All in all, I think the organization allows us to put greater focus in the markets and solutions where we have our greatest strengths,” said George Scalise, Apple’s chief administrative officer and head of the new operations division.

Apple also said that co-founder Steve Wozniak would return as an adviser to chairman and chief executive officer Gil Amelio, a position already held by Apple’s other co-founder, Steve Jobs. Wozniak and Jobs, who built the first Apple computer in a garage, both quit Apple in 1985.

The Cupertino, Calif., company’s announcement of its latest make-over came on the eve of Apple’s annual shareholders meeting. It also occurred almost exactly a year after Amelio took charge of the company. At the time, Apple was battered by financial losses and falling market share - problems that persist.

Amelio took the company through a restructuring that including 1,500 job cuts. After several money-losing quarters, Apple made a surprise $25 million profit last summer - only to be hammered with a $120 million loss in the October-December period.

Apple, when it reported its financial results last month, said it would restructure to cut costs 20 percent. It hopes to make money again by September but plans to do so on lower revenues.