Apple Computer Inc. Begins Implementing A Reorganization Plan To Streamline The Company And Prepare For Future Growth

CUPERTINO, Calif., June 14, 1985 -- PRNewswire -- Apple Computer Inc. today began implementing a reorganization plan to streamline the company and prepare for future growth by announcing consolidations and workforce reductions.

The company said there will be a one-time cost of the consolidations which will result in a loss for the third fiscal quarter of 1985. "We expect these steps to significantly reduce the break-even point of the company," said John Sculley, president and chief executive officer.

As previously announced, the company will be organized along functional lines instead of product lines and will reduce the number of manufacturing facilities worldwide from six to three. These changes will result in a reduction of 1,200 jobs. No cutbacks in research and development efforts are planned.

Apple's highly-automated Macintosh factory in Fremont, Calif., will become Apple's primary manufacturing site, where the Apple IIc and Macintosh will both be built. Apple will continue worldwide manufacturing of the Apple IIe in Singapore, and its factory in Cork, Ireland, will continue to support the European market. We have also entered into serious negotiation with a long-time Apple vendor to sell our Garden Grove keyboard and mouse assembly operation.

"The slump in the personal computer industry is significant and Apple has taken aggressive steps to bring our organization in line with these conditions," said Sculley. "We've made the tough decisions necessary to create a unified, cost-effective company focused on our key markets--which are education and business through dealers--and have added seasoned executives to our management team. We will also be taking additional positive steps in the near future to strengthen our relationships with our dealers and position ourselves for future growth. In the meantime, our sales to education continue to be strong and we remain a debt- free company with over $200 million in cash reserves."

/CONTACT: Barbara Krause of Apple Computer, 408-973-3719 or Jane Anderson of Regis McKenna, 415-494-2030, for Apple/