COMPUTERS: Apple Loses Its Blush

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Only a year ago, Apple Computer was reveling in a sales surge as its Macintosh computers won wide acceptance for business applications. But Apple's blush has suddenly faded. Because of slowing sales, the company is expected to lay off as many as 800 of its 12,000 employees. Under pressure to revive growth, Apple President John Sculley has launched a top-management shake-up. Two weeks ago, he appointed Michael Spindler, who led the company's successful foray in Europe, as chief operating officer.

Spindler's promotion, however, has produced hard feelings among other top officers. Apple announced the resignation of Allan Loren, head of the company's U.S. division, that same day. Another potential casualty: Jean-Louis Gassee, the colorful president of Apple Products. Sculley has already forced Gassee to transfer many of his job responsibilities to Spindler.