Pink Slips & Gold Stars (2/2/99)
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It seems like those rumored Cork, Ireland layoffs are official-- Apple PR rep Rhona Hamilton has commented on the situation and confirms that there will be layoffs, but states that the situation isn't as dire as many predicted. According to MacCentral, the layoffs come as a result of Apple's "ongoing Worldwide Operations strategy" but Apple plans to lay off only about "50 regular employees" and an unspecified number of temporary employees at the Cork plant. The thing is, the pink slips don't end there-- Apple's plan to outsource iMac production to a third-party company means that jobs will be cut at all of their plants, not just the Cork one.
For example, the Sacramento Bee reports that Apple's Elk Grove plant will suffer a "stunning reversal of fortune" as Apple moves iMac production to South Korean manufacturing firm LG Electronics. About 350 jobs will be cut in Elk Grove-- 300 temporary workers and between 25 and 50 permanent positions; apparently, a similar fate will befall Apple's Singapore plant. It seems that all the workers that Apple added to ramp up iMac production are now being let go-- but that seems to be the nature of the business. Apple notes that having LG Electronics build iMacs will reduce shipping and inventory costs, which could mean that the base price of an iMac will continue to head south to compete with super-cheap Wintel PC's. And speaking of heading south, is there any truth to the rumor that most of the iMacs will be produced in LG's Mexican plant, as Elk Grove workers claim they were told? Hamilton "had no information about that," though she doesn't deny that LG has a plant in Mexico. (Did Ross Perot just wander through here, muttering under his breath about a "giant sucking sound?")
Incidentally, some faithful AtAT viewers wrote in with a couple of interesting facts about LG Electronics. First of all, Russell Maggio notes that "LG" stands for "Lucky Goldstar," which is the new name chosen by the former Korean brand "Goldstar" in order to get away from their reputation for "fairly mediocre" televisions, VCR's, and other consumer electronic devices. Only time will tell if farming out iMac production will change the iMac from "inexpensive" to "cheap." And Shane Burgess mentions that LG is currently merging with Hyundai, and the South Korean LG workers are on strike due to fear of layoffs. That oughta keep things interesting, no? Just one more exciting chapter in the ongoing iMac story...
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And Now For A Word From Our Sponsors |
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| | The above scene was taken from the 2/2/99 episode: February 2, 1999: Apple plans to lay off factory workers on three continents, as iMac production gets handed over to a Korean firm with a mediocre reputation and ongoing labor problems. Meanwhile, Apple's increased its advertising budget, yet we still seem to see fewer Apple commercials than we should, and "Redmond Justice" heats up for Sweeps Month with a little tampering of evidence...
Other scenes from that episode: 1313: Deep Pockets, Big Spender (2/2/99) After watching them spend over $3 million on a single sixty-second commercial during the Super Bowl-- their first Big Game ad in fourteen years-- few people would doubt that Apple's being a little more "casual" about its advertising expenditures these days... 1314: Sweeps Month Scandal (2/2/99) Ah, February-- one of those glorious months known to TV lovers everywhere as Sweeps Month, when the airwaves are thick with extra doses of sex, violence, scandal, and all things wicked and ratings-building...
Or view the entire episode as originally broadcast... | | |
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