Apple Retail Layoffs: A Wake-Up Call

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.