Speculation Mounts That Apple May Oust CEO
As Apple Computer Inc. prepares to announce a major layoff and strategic overhaul Wednesday, speculation is mounting that Chief Executive Michael Spindler could be among the casualties, in part because of health problems.
According to friends of the 53-year-old Apple chief, he has suffered from high blood pressure and often been under doctor’s orders to stay away from the office. “There’s a real question as to whether Michael has the energy to do what needs to be done for Apple,” said a source close to the company.
Apple executives would not comment.
Apple announced last week that it would report a $68-million operating loss for the quarter ended Dec. 31, traditionally the strongest for computer makers, because of plummeting margins and slower-than-expected sales. The company is expected to announce a major layoff when it releases its full earnings report Wednesday. Some analysts are speculating that as many as 25% of the company’s 13,000 employees could get pink slips.
In a brief interview with the San Francisco Chronicle over the weekend, Apple Chairman A.C. “Mike” Markkula--who has so far been a strong supporter of Spindler--expressed concern about the chief executive’s health.
Longtime Apple watchers say Spindler’s health could provide the board with a convenient excuse to dump the now-controversial CEO.
“What Markkula said tells me that Spindler is out,” said Jean-Louis Gassee, formerly head of research and development for the Cupertino, Calif., computer company. “It was calculated. They’re sending up a trial balloon to see how it flies.”
A possible temporary replacement, Apple insiders say, is B. Jurgen Hintz, a member of the Apple board who from 1991 to ’95 was chief executive of Carnaud Metalbox, a French holding company with interests in the packaging industry. Before that he was an executive vice president of Procter & Gamble Co.
Markkula, who has been a key player throughout Apple’s tumultuous 19-year history, has fired three CEOs, including Spindler’s predecessor, John Sculley. But many say a management change alone will do little to solve Apple’s problems. Indeed, many analysts have hesitated to blame Spindler for Apple’s troubles, noting that many key decisions predated his ascension to the CEO post two years ago. There is a dearth of logical candidates to succeed him, they note, and the strategic problems remain with or without a new CEO.
Still, a series of forecasting miscues, disappointing sales and a series of executive departures have led some observers to conclude that Spindler is a liability and that only by firing him can Apple restore confidence. The board will meet Wednesday before the restructuring announcement.
In addition to the layoffs, Apple is expected to announce some new strategic moves. Speculation abounds that the company might take a radical step such as exiting the low end of the market and leaving that to clone makers, but that could not be confirmed.
