Apple Computers Inc. is shutting down the production phase of its operations center on Laguna Boulevard in Elk Grove.
Managers told workers this morning the company believes it can build its computers cheaper by outsourcing assembly to a firm in Southern California. One worker who did not want to be indentified told News10 much of the work will be undertaken by Quanta, a Taiwan-based computer manufacturing firm that already assembles Apple's PowerBook line of laptop computers.
Workers at the factory say there are 400 people employed at the Elk Grove production center, which is located at 2911 Laguna Boulevard. They were told today they have been laid off and would be given severance packages. Apple would not comment on the number of workers affected.
The company released a statement about the changes this afternoon. "As part of an ongoing effort to make our operations more efficient, Apple is closing its Sacramento manufacturing operation and moving most of its California-based manufacturing activities to a supplier in Southern California," it said, in part.
Macintosh and iMac computers had been assembled at the facility. Apple also has sales, warehousing and shipping centers in Elk Grove. Those areas of operation are unaffected.
The article stated that "Staffing at offices used by members in Folsom, Roseville, Sacramento and elsewhere for those services will not be affected".
They didn't mention the Elk Grove call center in Stonelake. I hope those jobs are included in the "elsewhere" category and are safe. The call center is the most prominent large employer in Laguna West due to its freeway visibility and has hundreds of employees that were moved into the facility in 2003.
I am so bummed to hear about the lay offs. Apple employees work so hard, loved their jobs and the company, and just couldn't compete. More jobs going away. What will our kids do for work? As a side, will we loose our summer concerts?
I was very saddened by the news that Apple computer is shutting down. This was the first building I saw when I first went house hunting and it definately made an impact on me. I personally know 3 people that work there and it's a sad time for Elk Grove.
I submitted by analysis on office/industrial employment to the City (Planning Commission, City Council and staff) over a year ago. Even if ALL the office and industrial land were built out, we would only have about 1/3rd of the office employment per capita of Roseville. The General Plan is amateur and ignores the realities of what a City needs to grow. Not sure what expertise went into developing it, but it will have to be seriously modified with improved development decisions to allow us to become a destination city rather than a commuter city.
Roseville is a jobs rich City with about a 1.3 jobs per household ratio. This is the opposite of Elk Grove. Here, most of us have to leave the City to go to work, there most of the jobs are held by people who live somewhere else. There is a balance. We need the jobs (and tax revenue) but you have to think about how those people treat your City when they don't live there. Bottom line: beware of jobs/housing ratios. When there is no accounting for the the TYPES of jobs and the TYPES of housing then you simply are guessing about who stays and who leaves. We need to strive for jobs that fit the residents.
Sparky - I agree that the jobs have to match the residents. To that I can only ask - what percentage of Elk Grove residents who have office or industrial employment actually work in Elk Grove? I would have to make a (very uneducated) guess and say it is 10%. This group of people is not minimally served by Elk Grove at all from an employment standpoint.
It might not be a great idea but considering the size of their lot how about a Laguna West Mall or Outlet? Not great traffic wise but
great revenue for the community....Just a thought no flaming please...
You're right Kengi - traffic would be brutal and please remember that the "community" that would share in this revenue would be the entire City of Elk Grove. In addition, I suspect that Westfield (the owner of Downtown Plaza that has been involved in fighting Lent Ranch) would put up a brutal fight to stop a mall just down I-5 from their mall.
It's glaringly apparent that big business only looks at the bottom line. They answer to stockholders. More and more jobs will go off shore unless we can offer a better climate for big business here. Many states do everyting they can to encourage business to move to that state with tax incentives. We must legislate laws similarly if California is to remain in the forefront of America's economy. Recent workerscomp legislation enacted while Davis was Governor is a prime example of what not to do! We have the right Governor now. Let's hope he can turn things around.