Steve Jobs announced to today that he is to resign as CEO of Apple due to health reasons. The news sent Apple’s share price tumbling with 7% being wiped of their value in after-hours trading alone.
Jobs has been suffering poor health for a couple of years and in January he took his second medical leave of absence.
He famously return to the public spotlight and the stage in March to launch Apple’s iPad 2. Suggesting that he was winning his fight with pancreatic cancer.
But in a statement to the board and Apple community he said: “I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I would be the first to let you know”
“Unfortunately, that day has come.”
Jobs has advised the board to execute their “succession” plan which see’s Tim Cook replacing the spiritual leader of Apple. Cook was the former COO and has been standing in for Jobs since January.
“The Board has complete confidence that Tim is the right person to be our next CEO,” said board member Art Levinson, chairman of biotech firm Genentech, in a prepared statement.
Jobs will not be leaving the company completely, he’s been elected Chairman of the board and the resignation will now see Cook joining the board effective immediately.
“I believe Apple’s brightest and most innovative days are ahead of it,” Jobs wrote. “I look forward to watching and contributing to its success in a new role.”
Apple’s stocks took a sharp dive on the markets in after-hours trading, but has since rallied to a 5% loss at 7.50pm ET – it looks as if the “succession” plan has calmed the markets to a degree.
But this is a major blow for Apple and the markets will be very worried about the future of Apple without the driving force that is Steve Jobs.
Here’s the full text of Jobs’ statement
What do you think will happen to Apple with the loss of Steve Jobs ? Will it be business as usual for the Cupertino company or will it have a major effect on the Californian technology company ? Let us know by tweeting us.
[spoiler]CUPERTINO, California—August 24, 2011—Apple’s Board of Directors today announced that Steve Jobs has resigned as Chief Executive Officer, and the Board has named Tim Cook, previously Apple’s Chief Operating Officer, as the company’s new CEO. Jobs has been elected Chairman of the Board and Cook will join the Board, effective immediately.
“Steve’s extraordinary vision and leadership saved Apple and guided it to its position as the world’s most innovative and valuable technology company,” said Art Levinson, Chairman of Genentech, on behalf of Apple’s Board. “Steve has made countless contributions to Apple’s success, and he has attracted and inspired Apple’s immensely creative employees and world class executive team. In his new role as Chairman of the Board, Steve will continue to serve Apple with his unique insights, creativity and inspiration.”
“The Board has complete confidence that Tim is the right person to be our next CEO,” added Levinson. “Tim’s 13 years of service to Apple have been marked by outstanding performance, and he has demonstrated remarkable talent and sound judgment in everything he does.”
Jobs submitted his resignation to the Board today and strongly recommended that the Board implement its succession plan and name Tim Cook as CEO.
As COO, Cook was previously responsible for all of the company’s worldwide sales and operations, including end-to-end management of Apple’s supply chain, sales activities, and service and support in all markets and countries. He also headed Apple’s Macintosh division and played a key role in the continued development of strategic reseller and supplier relationships, ensuring flexibility in response to an increasingly demanding marketplace.
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.