Apple shuts down Elk Grove manufacturing, moves ops to SoCal third-party supplier

“Apple Computer on Tuesday shut down its manufacturing operations in Elk Grove, idling a reported 235 workers as it attempts to cut costs in the cut-throat computer-making business,” The Sacramento Bee reports. “The company said it will continue to run other operations at its facility on Laguna Boulevard, though it declined to say what those operations entailed, or how many people remain employed there. Officials at the Cupertino-based company said the manufacturing will move to a third-party supplier in Southern California, but declined to provide further details.”

Full article here.

32 Comments

  1. The Bee would like to speak to Apple employees about the closing of the company’s manufacturing operations. Apple employees are urged to call Bee staff writer Clint Swett at (916) 321-1976, or e-mail him cswett@sacbee.com

    What’s up with this? Do they interrogate other companies’ employees when they are laid off? Sounds pretty unethical to me. They should talk to Apple.

  2. “Do they interrogate other companies’ employees when they are laid off? Sounds pretty unethical to me. They should talk to Apple.”

    Yeah, they should only get the corporate party line and not ask the opinions of any of the people who are now unemployed. After all, corporations never lie.

    No, it isn’t “unethical” to talk to laid off employees. They should also talk to Apple and report both sides in a fair and balanced manner. It’s a journalism thing.

  3. I agree, Perry, that it’s important to get both sides of the story – and from as many angles as possible – however – does anyone out there know if the Sacramento Bee or the reporter for this story has a policy to include such a statement like that at the end of every story that mentions layoffs? I’d think it would raise a big red flag if this were an end addition to just this story, and not, say, with any story which talks about layoffs at any other local manufacturing plant, no matter what they make.

  4. Oh no! They shouldn’t be allowed to talk to redundant Apple employees, they might not like Apple any more. They might say bad things. We can’t handle people saying bad things about Apple. It upsets us. These people who have just lost their jobs just have no sympathy for the paranoid mac geeks.

    I think they probably would be interested to talk to anyone from any company in a similar situation.

  5. OnARoll:

    Apple has “idled” 235 employees. This is what percent of the total number of Apple employees?

    Apparently, the only organizations that rarely idle, eliminate, or cut staff are those funded exclusively by taxes, tolls, and fees.

  6. smucker:
    The article says “…shut down its manufacturing operations in Elk Grove”
    Get real, “idled” is a politically correct word for “Fired!”.
    If your company closed down where you worked and said you were now “idled” – you think you are going to keep getting a paycheck? Dream on.

    Apple is cutting costs. It�s got major problems with the mini iPod and new G5 products.

  7. OnaRoll has said it, they release a newer Emac 1 day before the bad news, they lay off 235 people the same day, and will report G5 sales sinking in the growing computer market. Then they will attempt to cover this up by saying they changed their accounting. Smoke & Mirrors. MacZealots refuse to think Apple ever does wrong. they are like a bunch of lemmings following around their cult leader off a cliff. reminds me of a old Apple commercial except the ones in the commercial are the MacZealots!

  8. It would be unethical for a local paper not to investigate further and get both sides of the story. Today’s analyst meeting will not be a “shocker”. Apple will meet or exceed their previous predictions for the quarter (Morgan Stanley posted such a prediction yesterday). Apple have posted a “warning” last week if they were going to be short of their expectations. They did not. The only big story right now is what is going on with the mini. Mine is having problems and although I have received confirmation that Apple will take it back for repair or replacement they have not as yet sent me a shipping box. It has been three days since I filled out the on line request.

  9. Desktop sales across the entire computer industry have not grown as in the past. As a matter of fact double digit growth is no longer happening in the industry. “Mac Zealots” or “PC Zealots” it doesn’t matter. Laptops are now the computers of choice for professionals and students. Layoffs are not something endemic just to Apple. I think I read that one of the top PC makers just closed its stores. Why are people so angry on this forum? Could it be that we are getting posts from 16 year old “know it alls” who have yet to gain any sense of maturity? Business cycles have ups and downs. Apple is doing just fine. Because it is now doing better it is up for more attacks and scrutiny. It goes with success. Look at all the bad press M$ gets. By the way, Apple execs stated at the last quarterly meeting that they did not expect G5 sales to ever reach the levels that the older G3 and G4 desktops reached. The market has changed as I said above.

  10. One other thing. Read the Sacramento Bee story. Apple is giving the manufacturing to a third party… they are outsourcing, which helps to cut costs. The company that they’ve chosen is in the U.S., not overseas. It’s good business practice to cut costs. Not to do so is bad business practice.

  11. “Get real, “idled” is a politically correct word for “Fired!”.”

    OnARoll, that’s a very zealous comment, but it is also wrong. Getting laid off and getting fired are two very different events. People who get laid off can at least collect unemployment if they don’t have another job to go to. People who are fired cannot. Another point, even the little bit that MDN gave us states that the plant will continue other operations. The Chrysler plant near my home idles workers regularly. The workers go down to the union hall to see if there’s another position each morning. Some get right back to work in another part of the plant, others go weeks without a new assignment. If you really have to have a bad attitude, fine, but at least pay attention to what you’re reading.

  12. They could not use the work “fired” since Trump ( The Apprentice) Trademarked it. ” width=”19″ height=”19″ alt=”smile” style=”border:0;” /> (that is a joke for those of you without a sense of humor)

    And I have to agree with Joe McConnel, I look to where jobs go when they are cut from one location and moved to another. They do not cut jobs to save money then reopen down the street. I would not be surprised to see the jobs were moved out overseas. That concerns me greatly as we (US companies) are shipping out way too many jobs overseas. I hope that Apple has not followed suit sending more jobs out of this country.

  13. Joe ,

    Production is moving to Foxconn (located in Fullerton) and Quanta (located in Fremont) . When the Apple Singapore plant ceased manufacturing activites that work was transferred to Foxconn in China (Shenzhen) . Currently the only remaining Apple owned manufacturing facility is in Cork (Ireland) .

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