Apple Will Lay Off About 100, Company Says

Apple Computer Inc. on Monday denied published reports that it will lay off up to 1,000 people from its sales and marketing arm, saying instead it will probably let go fewer than 100.

The Cupertino, Calif.-based personal computer maker said the layoffs would be part of a reorganization at Apple USA that began in April. The company’s low-price strategy has cut its profit margin.

“There is a small redeployment we are undergoing within Apple USA. . . . It’s not a major downsizing,” said Lisa Byrne, spokeswoman for the unit.

The cuts would be the second at Apple this month and one of a series of moves that eliminated thousands of jobs in the Silicon Valley in the last year.

Apple responded to reports of layoffs that appeared in the trade journal InfoWorld and the San Francisco Chronicle. Both publications, saying the cuts would occur by the end of the month, cited unidentified sources.

The weekly InfoWorld reported in its edition published Monday that Apple USA would lay off 500 to 1,000 people. The Chronicle reported Saturday that the company was preparing to lay off up to 500 workers.

But Byrne said the layoffs would total “probably less than 100” employees and that those let go would be given preference for other openings elsewhere in the company. Apple declined to say how many people work in the sales and marketing unit based in Campbell, Calif.

Last week, Apple said it plans to close its manufacturing plant in Fremont and lay off 345 people.

“With the competitive pressures in the PC market, Apple has to follow prices down, and they are realigning the company so the can remain profitable,” said Michael Murphy, editor of the California Technology Stock Letter.

The electronics industry has been hurt by the flaccid economy, falling computer prices and defense cuts. So far this year, more than 6,700 people have been laid off from electronics concerns in the San Francisco Bay area.