Apple Store Cuts Personnel to Increase Profits?

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Posted August 16, 2012 at 4:15pm by iClarified

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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Apple Store Cuts Personnel to Increase Profits?

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Petr - August 16, 2012 at 5:26pm

I change my ipad 4 times (it was no luck situation - not me), every time i made an appointment and waited 15-20 min in apple store. plus 10-15 for swaping proccess. all togerther 1hour45min-3hour10min. I could work that time and generate some money. I'm loosing with apple. Going to buy next iphone only online and return online if needed. Apple store is a waisting of time now. I hope this is just a rumor. Apple cannot lay off personal when new imac, iphone is coming.

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Richard - August 16, 2012 at 4:38pm

I thought that a recent survey mentioned that apple was targeting on customer service before profits.

Wicwbycub - August 16, 2012 at 4:31pm

Hope this is just a rumor. Every time I go there they always are busy at any location but they always seem to help you in just a very short wait. They're making enough money already. Why mess up a good thing. Especially if they want to increase business more. They should analyze store by store vs straight cuts.

Apple Employee - August 16, 2012 at 4:34pm

It's not a rumour. I work in one of the London stores, and they just fired about 15 people who were near the end of their probation. It's awful. Staff happiness is at an all time low, especially as they are trying to brush it under the carpet at our store. It's awful, and Steve would be turning in his grave.

tdtran1025 - August 16, 2012 at 4:21pm

Due to pressure from watchdog groups, and in response to poor treatment/compensations to employees.