Apple Changes Structure of Its Top Management

From Associated Press

Apple Computer Inc. Chief Executive Gilbert F. Amelio has changed the company’s top management structure, choosing six executives to report to him directly, the company announced late Thursday.

Two of the six joined Apple after Amelio, the former chief executive of National Semiconductor Inc., succeeded Michael Spindler as Apple CEO in February.

The chief of Apple’s domestic operations, James J. Buckley, a victim of the shake-up, is leaving after 11 years at the company.


The changes come about two weeks after Amelio announced a strategic plan to restore the third-largest maker of personal computers to profitability.

“Now that we’ve taken the time to thoroughly assess our company, our products and the dynamics of the marketplace, we’re ready to implement an organizational structure designed to support our revised strategy,” Amelio said in a statement.

The changes, which take effect next week, create a layer of six managers just below Amelio. They are the chief operating officer, chief administrative officer, chief technical officer, chief financial officer, senior vice president of corporate marketing and vice president of strategic planning.

Amelio appointed Marco Landi, the leader of Apple’s European operations, chief operating officer.

He will oversee Apple’s product divisions, including its core Macintosh development operation.

George Scalise will be chief administrative officer, a position similar to the one he had at National Semiconductor before Amelio asked him in March to come to Apple.

Fred Anderson, hired last month, will be chief financial officer.

Two company veterans fill out the team: Satjiv Chahil will be senior vice president for marketing and Douglas Solomon will be the vice president responsible for development and implementation of strategic plans.

Amelio will assume the duties of chief technical officer until he hires one.

Cupertino, Calif.-based Apple suffered a loss of $740 million for the quarter ended in March. It was the worst quarterly performance ever for the company, as it wrote off the value of unsold inventory and set aside funds for severance packages for 1,300 employees it laid off.

The company plans to cut 1,500 more jobs this year.

Executives have said they expect the earnings losses to continue for the rest of the year.

Amelio said May 13 that Apple would cut costs by simplifying its product line. He also said the company would increase its development focus on Internet-related products.