: Apple Store Personnel Cuts to Increase Profit?


ehMax
Aug 16th, 2012, 11:09 AM
ifoAppleStore.com (http://www.ifoapplestore.com/db/2012/08/15/store-personnel-cuts-linked-to-profit-goal/) is reporting that there are going to be a number of layoffs at many Apple Stores. The report says that layoffs are not due to declining sales, or reduced traffic, but rather as a measure to increase profit.

This seems like a bizarre move (One that Steve would never approve of?) in light of the fact that the Apple Stores are already the most profitable retail stores in the world. Apple is also about to enter the very busy back-to-school season, the release of the iPhone 5, and then before you know it, the holiday shopping season.

The idea that Apple would make a move like this to "maximize profit" when they have almost a trillion dollars at their disposal is a little troubling to me.

The report sites numerous tipsters within the Apple Store that management have received the following instructions:


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


:eek: Apparently this direction is coming from new Sr. VP Retail John Browett. Tipsters are also saying that Apple will be quietly dropping free workshops that they have always offered and instead will steer customers to the $99 one-on-one training service.

Mayor's Opinion: If all the reports are true, I definitely think this is a bad move for Apple and not one that Steve would be on board with. Does the move bring any value to Apple's customer's? No, in fact it will probably make purchasing at the Apple Store not as pleasant. It's a move done purely to maximize profits, which is very disheartening for a company that is just rolling in the profits and cash. Profits that were acquired in part through the hard work and efforts of many front-line retail staffers. A job that for anyone who's worked an extended time in retail, knows that the work can be life-sucking and extremely draining.

I'm occasionally starting to catch some bone-headed moves by Apple in the absence of Steve. They recently ran a strange ad-campaign during the Olympics actually featuring "Apple geniuses" at Apple Stores. The ads were not so good, and they were pulled from the air pretty quickly.

I know Steve didn't want Apple to constantly ask, "What would Steve do", but maybe they should be asking themselves, "WOULD Steve do this?" Apple has made a number of moves recently, where my first reaction would lead me to believe the answer would be a resounding "No."

What's your thoughts?

Joker Eh
Aug 16th, 2012, 11:20 AM
Welcome to the world of John Browett.

A comment from a MacRumors reader when the news came out about his hiring.

John Browett was in charge of the #1 WORST RETAILER IN THE ENTIRE UK.

Dixons has more customer service complaints than almost any other company in the UK. Even mentioning the word Dixons gets people rolling their eyes and shaking their heads "no" in the UK. Nobody respects Dixons, because everyone has been burned by Dixons.

So WHAT IN THE WORLD can this guy POSSIBLY do for Apple, except COMPLETELY DESTROY what was once an incredible retailing experience created by Ron Johnson?

John Browett understands Apple & excellent customer service about as much as I understand flying a rocketship to the moon.

And for Tim Cook to hire this guy is just inexcusable. John Browett should not be allowed to even put one finger on the Apple brand. He is poison. Someone has got to get rid of this guy before he destroys everything.

This seems to a very odd move and only made when cuts have to be made but with so much money in the bank and new stores going up everywhere, it looks like he is trying to put his stamp and save the company the $60 million in stock options he got.

i-rui
Aug 16th, 2012, 11:30 AM
Apple (the corporation) has been moving in the wrong direction for the past couple of years IMO.

macintosh doctor
Aug 16th, 2012, 12:27 PM
sounds like it will be like the hudson bay - I go there and I can not find a sales person to save my life if i want to buy something..
Profits over customer service is not what the plan should be..

Last time i was at the apple store i was waiting for an hour to speak to a genious.. LOL.. [ and I had an appointment, also business one at that too. ]
it must be nice to have customers come in herds and treat them like cattle too. I wish i had that problem.

Sadly - i was listening to every person who left.. - not one was happy with the service.. [ I think they are headed in the wrong direction ]

eMacMan
Aug 16th, 2012, 12:58 PM
My very few encounters with an Apple Store would lead me to believe they are generally a bit understaffed to start with. May be just the time of day I happen to go in but I usually have to wait at least a few minutes before talking to anyone.

HowEver
Aug 16th, 2012, 01:34 PM
There are reports this morning that the Stores' policy on layoffs etc. has been completely reversed. Crisis averted.

Joker Eh
Aug 16th, 2012, 01:34 PM
Apple 'Messed Up' with Retail Store Cutbacks, Denies Mass Layoffs - Mac Rumors (http://www.macrumors.com/2012/08/16/apple-messed-up-with-retail-store-cutbacks-denies-mass-layoffs/)

kps
Aug 16th, 2012, 07:17 PM
Looks like we're headed for a tumble-down and the return of the "sugar water" salesmen.:(

groovetube
Aug 16th, 2012, 07:22 PM
anytime I've been to the apple store, I get annoyed at having to try and find someone who'll take my money. And I'm an apple fan.

Wonder what the switchers think.

kps
Aug 16th, 2012, 07:31 PM
anytime I've been to the apple store, I get annoyed at having to try and find someone who'll take my money. And I'm an apple fan.

Wonder what the switchers think.

Especially when there's a ratio of 5 Apple employees to every one customer?

(( p g ))
Aug 16th, 2012, 07:37 PM
That they corrected their course so quickly and so bluntly suggests to me that an order came down from the boss to undo some rather spectacularly bad planning on the part of their recently appointed VP of retail ops. Even now, Browett is trying to sugar coat his efforts as a "new staffing formula for its retail stores." But we all know that's happytalk for "cut staff to maximize revenue." Obviously Apple's CEO wasn't buying this.

Joker Eh
Aug 16th, 2012, 08:16 PM
Especially when there's a ratio of 5 Apple employees to every one customer?

Not when I have been in the store. You can't even walk in between the tables or look at anything . As everyone looks it as an opportunity to check email or Facebook .

(( p g ))
Aug 16th, 2012, 08:46 PM
it's not a conincidence that Apple Stores are well staffed *and* have insane profit-per-square foot numbers...these are good problems to have.

If you want fewer staff, go shop at Best Buy.

krs
Aug 17th, 2012, 12:52 AM
The few times I have been to the Apple store in downtown Montreal there was definitely too much staff.
Doesn't look too good if staff is standing around desperately trying to look busy.

And the one time I went in to see if I could a MacBook power supply replaced, I had no genius appointment which I should have made, but my wait with no appointment was less than 15 minutes and five minutes after that I walked out with a brand new power supply.

JAMG
Aug 17th, 2012, 09:44 AM
5 to 1 genius' to clients, all too busy being impressed with themselves for working at an Apple store....very common...

I like to sass them when they are pushy. I say I am shopping for a wireless keyboard with numeric keypad, a external DVD, an affordable monitor, and boxed software... when they try to explain that the app store is more convenient, I ask why they sell iTunes, App Store and iBook cards separately. At that point most of them call an associate or pretend they are being called in the back on their blue tooth...

RicktheChemist
Aug 17th, 2012, 07:48 PM
Apple (the corporation) has been moving in the wrong direction for the past couple of years IMO.

BANG! I agree with this one 100%...

RtC