Apple Computer will announce its restructuring plans on March 14.
In an internal memo to all staff members, Apple CEO Gil Amelio says, "On March 14 we will then give more details about what we will do, what we won't do, the number of layoffs to be made and the charge that we will make to our second-quarter earnings."
However there are no details as to how many layoffs there will be or where those layoffs will occur. "Anything that you read in the press is pure speculation," says Katie Cotton, a spokeswoman for Apple.
"This probably is the most significant reorganisation that I have seen in all the years I have been watching Apple," says Pieter Hartsook, vice president of Apple marketing, analysis and research. "This seems to be an honest attempt to significantly restructure the company. "
"Apple has to stop this financial bleeding," said Tim Bajarin, president of Creative Strategies, a software consultancy in Cupertino, California. "I would expect them to shed between 4000 and 5000 employees. In the end the company's Newton division and Imaging divisions may suffer."