Report: Apple cuts retail store budgets, refocuses on profits

Retail policy changes and cutbacks at Apple Stores are quietly continuing, according to a new report from ifoAppleStore, placing more emphasis on revenues and profit over customer satisfaction. The report claims that Apple has cut back in several budgetary categories, while decreasing hours for many employees, and instituted sales-focused performance metrics that threaten to further undermine morale within the retail division.

Last month, Apple Senior VP of Retail John Browett reportedly instituted a number of new staffing policies, including reducing hours, laying off new, probationary employees, and limiting overtime, leading to outcry from retail employees. According to a subsequent follow-up in The Wall Street Journal, Browett later reversed these changes and denied that any employees had been laid off, however, ifoAppleStore’s sources disagreed with at least some of these claims, indicating that layoffs had in fact occurred, and that affected employees were later rehired.

This more recent spate of changes within Apple Retail involve a reduction in workshops at many stores, continuing limits on available overtime hours, and assigning of only minimal hours to part-time employees. Further, new employee performance measurements emphasize contract sales of iPhones, as well as the number of accessories such as cases that are sold alongside major products. Additionally, the report indicates that employees are being told to promote use of the EasyPay app, despite the fact that EasyPay sales are not credited to any specific employee, thereby having no positive impact on individual performance reports. Sources also indicate that no explanation or apology has ever been received from Browett or store management about the original staffing cuts, despite public claims to the contrary. Instead, employees have been told not to discuss the situation with anybody, leading to an overall decrease in employee morale.

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