Apple Retail Layoffs: A Wake-Up Call
Monday, April 27, 2009 at 6:32AM 
Archive.orgLast week, Apple announced a reduction in retail staff of the equivalent of 1,600 full-time positions 1,600 people. As many of you know, everyone involved with TheDigitalLifestyle previously worked for Apple in one capacity or another. Personally, I began as a mac specialist, later as a part of store management, and finally as a business consultant.
I remember in March of 2004, when I was working as part of an Apple retail store management team, rumors were beginning to swirl that full-time employees would be cut to below 40 hours per week. I remember being shocked. I was young, and "drank the kool-aid" as they say. It shook my bedrock view of Apple's retail initiative as first and foremost a showcase for Apple products, and secondly as a profit-driven retail store.
Those rumored full-time staff changes never came, and I don't know how serious those discussions ever were. What I do know is, it made me weary of getting too comfortable in Apple's retail division.
Last week, Apple announced 1,600 positions would be eliminated throughout retail. This as a time when quarterly results exceeded analyst expectations, and the company saw its best non-holiday quarter ever.
It has felt for some time as if some companies were jumping on the poor economy bandwagon to justify shrinking staffs, and now it appears Apple may be one of them. While some now see light at the end of the tunnel in the economic forecast, Apple seems to be getting these cuts in just before it would look absurd to do so. Jobs has stated previously how key the company views increased/sustained investment in research and development during downturns. It doesn't appear that same investment applies to those "in the trenches," actually closing the sales for the company.
For those of you working in Apple retail, consider this a wake-up call. You may have more love for the company you represent than anyone else at any other store in the mall. Unfortunately, it doesn't mean that the same corporate realities don't apply.
Apple, apple retail, employment, layoffs Permalink
Reader Comments (7)
Apple did not announce the lay off of 1600 positions - it was, as far as anyone knows, the removal of 1600 equivalent full time positions - in other words, reduction of hours. It could equally well be the normal reduction in casual staff that would occur at the end of the Christmas/holiday period. There are no mass sackings.
Wrong, just like every other journalist out there that never does any checking of stories.
http://mediamemo.allthingsd.com/20090424/did-apple-just-fire-1600-retail-workers-nope/
The story has been edited to show this as the elimination of 1,600 full-time equivalency hours. Given retail's dependence on part-time workers, this could actually mean a wider effect if part-time positions were eliminated, or a reduction in hours across all existing employees. Either way, the core of the post is that Apple retail is not immune to the same profit pressures as found everywhere else in retail.
So did full time employees see a reduction in hours? This would be a first as far as I know.
Apple made no announcement. People picked this up from Apple's 10Q.
Further, if you look at last year, there were only 12,000 FTEs. This year, 14,000 FTEs. That's 2000 more FTEs in a year. However, we have to control for the increase in stores, that went from something like 205 to 250, or just about 22%. FTEs, increased about 17%, +/- 9%. In other words, within the margin of error.
The drop in FTEs from Xmas, can almost certainly be explained by Xmas shopping hours, as Apple keeps retail open longer hours and staffs the store for heavier traffic flow.
In other words, there's nothing to see here.
"In other words, there's nothing to see here."
True, but you know how these things go. Any chink on Apple armor, real or not, is a target for controversy.
As one of the former Kool-Aider; I believe that elimination of 1,600 full-time equivalency hours is most likely part timer leaving or being let go. Plus, keep in mind the high turn over rate for retail in general. I would not be surprise if Apple brought back or hired 800 replacements