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Apple Store Cuts Personnel to Increase Profits?

Friday, August 24, 2012


Apple SVP of Retail, John Browett, has ordered cuts to Apple Store personnel to increase profits, reports ifoAppleStore.

The staff reductions seem to be in direct contradiction to an increasing number of visitors to the stores, and the need to maintain Apple's global reputation for excellent customer service. But according to those with close ties to the retail stores, Browett feels the stores are "too bloated" with employees, and he is willing to gamble the stores' legendary customer experience to gain back a few points of profit margin.

Browett apparently made the decision against strongly worded advice from Apple retail veterans who noted that the company is approach its busy back-to-school season and the cuts could create a customer service catastrophe. He reportedly said the stores need to run "leaner" in all areas, even if customer experience is compromised.

Actions Taken:
● Cease all recruiting and hiring events
● Make no promotions
● Immediately lay off newly-hired employees who are still on probation
● Reduce available hours for part-time employees
● Reduce or eliminate available overtime
● Lay off or fire employees who can only work more than 32 hours a week and not part-time

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