Apple chief to take medical leave

By Chris Nuttall and Richard Waters in San Francisco

Published: January 14 2009 21:51 | Last updated: January 15 2009 00:13

Steve Jobs on Wednesday announced he was taking a six-month medical leave of absence as chief executive of Apple, prompting concern not only about the prognosis for his health but also for his company.

Mr Jobs, 53, said he had learnt that “my health-related issues are more complex than I originally thought”. He revealed just last week he was suffering from a hormonal imbalance that he said was relatively simple to cure.

Apple shares were halted ahead of the announcement, which came in the form of a copy of an e-mail sent to all employees. The shares then fell nearly 10 per cent in extended trading to $76.88 on the news.

“In order to take myself out of the limelight and focus on my health, and to allow everyone at Apple to focus on delivering extraordinary products, I have decided to take a medical leave of absence until the end of June,” Mr Jobs said in the e-mail.

Tim Cook, Apple chief operating officer, will be responsible for the day-to-day running of operations in the interim, he said.

Mr Jobs said he planned to remain involved in major strategic decisions and had the full support of the board of directors.

“I look forward to seeing all of you this summer,” he said.

John Coffee, professor of law at Columbia Law School said Apple’s independent directors should now be looking for a new chief executive.

“You have to have a process in place now that you have an ill CEO. In circumstances like this, you can’t assume he will get better,” he said.

Mr Jobs has been critical to a revival in Apple’s fortunes over the past 10 years, leading the introduction of successful products such as the iMac, iPod and iPhone.

But, in spite of successful treatment for pancreatic cancer in 2004, fears have grown about his health. Over the past year, he has looked noticeably thin and haggard at Apple news conferences.

Mr Jobs finally provided an explanation last week. He said doctors had discovered a hormonal imbalance that had been “robbing me of the proteins my body needs to be healthy”.

He said he would stay on as chief executive as he regained the weight he had lost, which would take until late spring.

However, just 10 days later, Mr Jobs’ e-mail suggested a deteriorating situation where he was stepping aside and would not be able to return until the summer.

“There is no other Steve Jobs. As a public face, and a rallying place for the company, he’s very hard to replace,” said Mike McGuire, analyst with the Gartner research firm.

However, Mr McGuire said Apple executives – in particular, Tim Cook, who ran the company during Mr Jobs’ surgery – were capable of keeping the company on course.

Dr Run Yu, medical director of the Carcinoid and Neuroendocrine Tumor Center at Cedars-Sinai Medical Center in Los Angeles said Mr Jobs’ condition could be more serious than was previously thought.

“His history of the partial pancreatectomy, and Type-1-like diabetes could complicate any recovery efforts,” he said.

Mr Jobs admitted on Wednesday speculation was still dogging the company. “The curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple,” he said.