AppleInsider Staff
Citing inside sources, ifoAppleStore reports that signs persist of an emphasis on revenues at Apple's retail outlets, saying the drive to profits is taking its toll on employees and could tarnish the chain's reputation.
The report comes after retail chief John Browett allegedly laid off a significant number of recently-hired staff, cut back working hours for part-timers and put a freeze on inter-store transfers in order to boost profit margins. In a subsequent investigative piece by The Wall Street Journal, Browett claimed the staffing changes were a "mistake," noting that the actions had been reversed. He then reportedly requested leadership teams tell employees "we messed up," stressing that there were no layoffs taking place and new hires were being made.
According to the unnamed sources, the employees who had been "dismissed" were rehired and transfers resumed, though some locations still have no in-store workshops, offer limited overtime and haven't yet reversed demotions.
Browett supposedly has yet to apologize for the "mistake," and has instead reportedly instructed employees not to discuss the matter. Morale has declined, according to one insider, due to lack of information, inability to discuss the situation and increased pressure to sell product.
Sources say employee performance is measured by metrics, including contract sales of iPhones and a program called "essentials per hero product," which weighs in the amount of value-added merchandise like accessories a salesperson moves. Staff has also reportedly been advised to urge customers to use the EasyPay app, however sales made through the program aren't credited to a specialist's sales history which relates directly with performance.
Perhaps even more of a problem are alleged cuts to maintenance budgets, which could affect the trademark cleanliness of Apple Store floorspace and product displays. Also reportedly cut are select training areas and Red Zone displays, to be replaced by more "Etc." and accessory shelving.
While it is unclear how widespread the changes are, or if they even officially exist, sources claim there has been a definite emphasis on revenue since Browett took over for former retail head Ron Johnson in January.
Malcolm Owen
Andrew O'Hara
William Gallagher
152 Comments
If I see a box of Ginger Snaps on the shelf, I will know things have digressed.
I was in an Apple store today and they wouldn't give me a free replacement on my Macbook Pro battery, which was so swollen that the trackpad doesn't even work anymore. Yes, it's out of warranty, but it's also a massive fire hazard and has the risk of exploding. (It still holds a charge just fine, it just doesn't fit in the case anymore.) How long until there are more batteries bursting into flames on airplanes because Apple is too cheap to offer replacements. And this is after I already shelled out ~$80 to buy a new power cord within the last couple months because that too had become completely frayed and was also a fire hazard.
What's more, I tried to report the swelling issue on their 800 number since it's a serious safety hazard, and they wouldn't even file a report.
I don't think this new guy gets it: Apple doesn't just sell a product, it sells a great customer experience. Everybody at that company knows that is how it works, and it is amazing that they are letting this guy go forward with this plan. Maybe they are a little overcrowded (I've felt the opposite most of the time) with employees, but Apple has made a lot of money primarily by focusing on the experience and not the bottom line.
Time sell Apple stock. Apple is now toast.
Whose fault is it? Tim Cook.
Things are going to be different whenever there is a change in CEO, and whenever there is a change in a significant position such as SVP of retail. We may just be hearing from some disgruntled employees, which there always are. The thing to remember is that Ron Johnson wasn't pushed out. A CEO position became available, and he jumped at the chance (although he's finding things difficult at JC Penney).
Like it or not 2012 is very different from 2001, and the goals of the stores are evolving. Before we all cry wolf, let's see what happens. For all the positives of the Johnson era, the Apple Stores always did have a circus-like atmosphere where it could be difficult for someone looking to purchase an accessory or non-iOS device. Things may just be a bit more obvious now that a new SVP is doing what all new SVPs do and establishing himself.