Why Beats Acquisition Can Change the Game for Apple Employees

By @peevesky on
A Man Listens to Beats Brand Headphones on a Street in New York
In Photo: A man listens to Beats brand headphones on a street in New York, May 29, 2014. Apple Inc will buy Beats for about $3 billion and bring recording mogul Jimmy Iovine into its ranks, hoping to win points with the music industry and help it catch up in fast-growing music streaming. As expected, Beats co-founders Iovine and rapper Dr. Dre will join Apple as part of the acquisition of the music streaming and audio equipment company. REUTERS

After weeks of speculation and innuendoes, Apple has officially announced the $3 billion acquisition of Beats. With this acquisition, Apple stands to gain in three aspects:  the paid online streaming services that beats is know for, the headphone business and the entry of Jimmy Iovine and Dr. Dre. So, it definitely looks like Beats' co-founders Dr. Dre and Jimmy Iovine come with the package.  However, not all of the company's employees will be as fortunate. Reports state that lay-offs have already begun.

 Amidst the acquisition, certain transitions will take effect especially in terms of manpower pooling.  As with any acquisition or take over, choices will be made on which employees and technological resources will be kept vs. those who will be cut.  It is always a slippery slope for employees.  Some jobs will be safe while some will not make it into the transition.  According to the report of 9to5Mac's Mark Gurman, the lay-offs and cuts are mostly happening in the human resources department, as well as in the support and finance divisions.  Apparently, Apple has made their phone hotline service available for Beats' employees to be able to discuss severance packages and transition plans.

The game will change for both Apple and Beats employees as creative and development positions in Apple will be given to a number of Beats employees.  In fact, some of these employees will be taking up office space in Apple's Cupertino site.  Of course, Apple will also take over the office of Beats in Santa Monica. Several engineers of Beats will continue to work on their music streaming services in Santa Monica.

In a sense, there is a human resource restructuring underway.  But, the restructuring does not stop there.  There will also be technological re-organizations in terms of syncing Beats technology to existing Apple servers.


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