Wednesday, October 31, 2012

Apple Software, Retail Chiefs to Leave - Wall Street Journal

Apple Inc. shook up its senior management in its biggest reshuffle since Chief Executive Tim Cook took the reins last year, pushing out two senior executives amid missteps and management tensions at the company.

Apple said Monday that senior vice presidents Scott Forstall and John Browett would leave the Cupertino, Calif., company. People familiar with the matter said both men were asked to leave.

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Scott Forstall, a 15-year Apple veteran and head of its mobile software unit, will be leaving the company.

The moves follow stumbles from both executives and their groups. Mr. Forstall, for instance, oversaw the launch last month of Apple's new mapping service, which was riddled with bugs. The software later prompted an apology from Mr. Cook.

Meanwhile, Mr. Browett, who only recently was appointed head of Apple's retail operations, oversaw the faulty implementation of a new staffing formula that cut some employee hours.

The departures also come as new fissures have emerged among Apple executives, after some took on new roles following the death last year of co-founder Steve Jobs, said people who have spoken to the executives. Mr. Forstall recently told people that there is no "decider" now that Mr. Jobs is gone, according to a person briefed on the conversation.

Mr. Forstall also recently sent some members of Apple's iOS software team an email saying that he felt the group wasn't working on enough big ideas in mobile software, according to a person briefed on the email.

Messrs. Forstall and Browett couldn't be reached to comment.

The changes are the most significant shift at the technology giant since Mr. Cook took over in August 2011. Since then, Apple's executive ranks had remained fairly stable. The company has rewarded its senior executives with lucrative, long-term pay packages.

Mr. Forstall, a 15-year Apple veteran, ran one of the company's most prominent groupsâ€"its mobile software unitâ€"and was one of its most important executives. The name of Mr. Forstall, a protégé of Mr. Jobs, was once bandied about as a possible successor. He rose quickly at the company and earned a reputation for risk taking. But he was also known as difficult to work with, and "never fit into the culture of Apple," said one person familiar with the matter.

Mr. Forstall has spent time in recent weeks working with his team to improve Apple Maps, which the company built to gain independence from a similar service run by Google Inc. Some people familiar with the matter said members of the team have acknowledged that in a rush to get out the product, Apple postponed fixing too many of its known bugs and errors.

Mr. Browett joined Apple just five months ago in a role that was vacated by longtime retail head Ron Johnson. At the time, Mr. Cook hired him from U.K. big-box-electronics company Dixons Retail PLC and praised Mr. Browett's expertise in customer service.

But the transition was rocky from the start, compounded by the new staffing formula that cut some employee hours. Internal rumors of Mr. Browett's departure intensified in recent weeks as Apple canceled a major event for its retail leadership team in Arizona.

The company said a search for a new retail head is under way and that the group would report to Mr. Cook in the interim.

Apple said Senior Vice President Craig Federighi, who oversees the Mac software group, would now also lead the mobile software group. Senior Vice President Eddy Cue will take over Siri and Maps. Executives Jony Ive and Bob Mansfield will also expand their roles. The company said that the changes would help consolidate its online services.

Write to Jessica E. Lessin at jessica.lessin@wsj.com

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