Apple lays off 174 in Elk Grove, adding NYC office?

Despite one of its best quarters ever, Apple on Thursday cut 174 sales jobs at its Elk Grove campus. The Business Journal reports that all affected employees -- some of whom were part of the company's telesales team and others who were online chat representatives -- were offered the option to relocate to location in Austin, Texas, or apply for another position at Apple in Elk Grove; however it was not clear why Apple chose to reduce its sales force as many predict a bright future with Macs sales growth outpacing the PC industry. Last year the company was searching for workers to man its iPhone support team in the Sacramento area.

The jobs that were cut are Mac telephone-sales positions, Apple spokesperson Kristin Huguet told the publication; but that said that some telephone-sales jobs will remain in Elk Grove; Huguet declined to say how many telesales position remained at the company and what the salary ranges were of those of affected.

"Apple's head count continues to grow in Elk Grove with more than 1,100 employees working there today, up more than 50 percent in the past three years," Apple said in a statement released on Thursday.

The Sacramento Bee reports that in spring 2004, Apple closed its assembly line in Elk Grove and transferred the work to a contracting firm in Southern California: "The Apple manufacturing work had been a pillar of the Sacramento area tech economy and became a point of economic pride. Among the products assembled in Elk Grove: the first generation, candy-colored iMac computers."

Other signs, however, point to Apple's continued expansion, as the company is rumored to be looking for additional office space in New York City. The company, which has yet to offer an explanation as to the delays in the construction of its second Cupertino campus, is seeking 10,000 to 15,000 square feet of property in the commercial heart of the city, the midtown area near Apple’s Fifth Avenue flagship store, according to Macworld UK.

The report says that Apple currently has about 10,000 square feet of commercial space in the Citigroup building in Manhattan and that expansion news has precipitated speculation the company hopes to create an enterprise-friendly location for its strategy for business computing.

Filed under: Apple
Other story tags: NYC, layoffs, Elk Grove