***TO ALL**** Read this (if you haven't already). This is very cool.....News Alert from AP Online via Quote.com
Topic: Apple Computer Inc
Quote.com News Item #3707952
Headline: Jobs Sends Cost-Cutting Memo
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CUPERTINO, Calif. (AP) - Apple Computer co-founder Steve Jobs,
calling on the company's ``egalitarian, entrepreneurial'' heritage,
is axing sabbaticals, ending cash bonuses for executives and
cutting severance pay.
Jobs, who has become Apple's de facto leader, announced the
changes in an electronic mail memo to employees on Tuesday.
The memo, signed ``Steve and the Executive Team,'' also calls
for more modest travel arrangements and continued consolidation of
employees.
The message, reported by newspapers and online publications, is
the latest evidence that Jobs is essentially running the company he
co-founded 21 years ago - despite his refusal of the chairman and
chief executive officer's posts.
Apple, based in Cupertino, Calif., has been struggling against
stubborn financial losses, disappointing sales and eroding market
share. Last month, the board of directors ousted chairman and CEO
Gil Amelio, and last week Apple replaced most of its board and
announced an alliance with Microsoft Corp.
``Today we are taking a few more steps which will begin to take
Apple back to its roots as a more egalitarian, entrepreneurial
company,'' Jobs said in his memo.
Apple, he announced, is eliminating cash bonuses for executives,
replacing them with stock options. The company also is reducing
severance pay to one week of salary for every year worked at Apple
from one month of pay for every year worked. Employees still get a
60-day notice with full pay and benefits.
In addition, Apple is now requiring all employees to fly coach
on trips shorter than 10 hours and business class for longer trips.
Employees can pay for their own upgrades or use mileage awards.
The company, starting in October, is eliminating sabbaticals, a
perk it adopted early on and a popular benefit with employees.
``Apple needs all hands on deck for the foreseeable future as we
turn our company's fortunes around,'' Jobs said.
Apple spokesman Katie Cotton said while some employees might be
disappointed by some changes, ``there's a widespread understanding
that the company has to take steps to cut costs and tighten
business wherever possible.''
Jobs, who co-founded Apple with pal Steve Wozniak in 1976, left
the company in 1985. But he returned last December as an adviser
when Apple bought Next Software Inc., the company he founded after
leaving Apple.
Although he's been considered a likely chairman or CEO, Jobs -
currently head of Pixar Animation Studios - has rejected both
positions and regards his increased role at Apple as temporary. |
