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Sculley became the de facto head of Apple in May 1985. Over the next few
months, Apple was forced to lay off a fifth of its work force, some 1,200
employees. The company also posted its first quarterly loss. All
this, and the resignation of Jobs, served to erode confidence in Sculley's
abilities as CEO of Apple.
At the same time, Sculley became locked in a battle with Microsoft's Bill
Gates over the introduction of Windows 1.0, which had many similarities to
the Mac GUI. Gates finally agreed to
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