Allen Z. Loren Resigns as Chief of Apple U.S.A.
Allen Z. Loren, president of Apple Computer Inc.’s U.S. operations, has resigned less than two weeks after the personal computer pioneer announced plunging profits and pending layoffs.
Analysts speculated that the departure of Loren, who had once been seen as a potential successor to Apple Chairman John Sculley, could be the beginning of a shake-up of the company’s U.S. operations.
The resignation comes as the nation’s entire computer industry is seeing sales rates slow and profits slide dramatically. Computer makers, including International Business Machines, Digital Equipment, Unisys, Wang and Sun Microsystems, have grappled to varying degrees with sagging sales and falling earnings. After a disappointing final quarter of 1989, Apple said two weeks ago that it would embark on a series of cost-cutting moves, including layoffs.
Rumors of Loren’s resignation began circulating late Friday in the hallways at Apple’s sprawling corporate campus in Cupertino, Calif., and at the traditional after-hours beer bust held by Apple employees.
There was no official public announcement of the departure, but one official confirmed Sunday night that it had happened Friday and attributed it to the company’s recent difficulties in the U.S. market and Loren’s longstanding difficulty fitting in with Apple’s relaxed corporate culture.
“Anyone running the U.S. division of any computer company is in a tough spot,” said the official, who requested anonymity. “The U.S. market has been slow for everyone.”
Loren, 51, joined Apple in 1987 after spending many years in a variety of information-management positions, most recently at the insurance company Cigna, where he headed the information-processing operations. Loren, who brought the perspective of a big-company computer user to Apple, rose quickly at the company and in August, 1988, became president of Apple’s U.S.A. division, a position that put him in charge of the company’s domestic sales and marketing operations.
But in recent months Loren has taken increasing heat. Wall Street analysts criticized the company’s marketing efforts as ineffective, and Apple employees were said to be unhappy because of continuing shifting of responsibilities and reorganizations.
One official said Loren, whose tough and gruff East Coast style never entirely fit in at laid-back Apple headquarters, was not a popular leader.
It is not apparent how Loren will be replaced. Employees said the resignation could set off a series of changes in the division, but early speculation settled on Michael H. Spindler, who heads the company’s European operations.
