Steve Jobs, the de facto chief of Apple Computer Corp, has pulled in the reins and introduced cost-cutting measures as part of his sworn mission to reverse the fortunes of the troubled company. In an e-mail memo to staff, Apple’s most powerful non-employee outlined reforms in benefits and perks on a company-wide scale. Under the new plan, Apple executives will be given stock options instead of cash bonuses. As of September, employees, who will be consolidated at the company’s research and development facility, will no longer be given a paid six weeks of sabbatical time for every five years of employment. A new severance plan will be instituted which will see outgoing employees receive a paid 60-day notice period and a week’s salary for every year of service, down from the current month’s salary for each year. On a lesser note, anything but economy class travel will be prohibited for employees booked on flights under 10 hours in length. The cost cutting measures came just a day after Apple revised its financial outlook, admitting it won’t be profitable in its current fourth quarter and saying it expects sales to be lower year-on-year through at least the first quarter of 1998. Apple shares shook off the news, gaining $1.5625 to close at $23.625 on Wednesday. Although nothing concerning Apple is etched in stone, analysts at First Call are looking for a loss equivalent to $0.13 per share in this quarter, but expect a profit of $0.02 per share next time.
