APPLE INC. MAY TAKE BITE OUT OF ITSELF IN EFFORT TO CUT COSTS

Apple Computer Inc. may soon sell key assets, including the Newton division, in a major effort to cut costs that may include laying off up to 20 percent of its employees, The Wall Street Journal reported Monday.

The struggling maker of personal computers has been forced to consider the sell-offs because of slow sales of its flagship Apple Computers. The reorganization moves were expected to be announced Monday or Tuesday, the report said.Apple is expecting revenue to fall 20 percent to $8 billion in its current fiscal year from the previous year, forcing a similar reduction of costs, the report said.

Apple declined to comment in the report.

In addition to the likely sale of its hand-held Newton computer, Apple also is considering selling some of its pricey software development efforts, sources inside the company said.

While layoffs of the company's 13,000-person payroll are not expected until March, the reduction could be as much as 20 percent, the sources said.

That would reportedly come on top of the job cuts or voluntary departures of 1,500 workers at the company last year, when the company started its turnaround measures.