Earlier this week, we reported that Apple was being criticised for laying off numerous recently hired retail staff. It seems that Apple is going back on its decision and is hiring them back.
According to a Dow Jones report, Apple had been using a new formula to calculate its staff levels at retail stores, which led to a wave of layoffs and a cut in shift hours.
John Browett, the new senior vice president of Apple’s retail, admitted that the company had “messed up” and is on track to hiring new staff to meet the demands of the predicted spike in customers next month, when the new iPhone and iPad mini is rumoured to be released.
IFO Apple Store released a report that credits Browett’s desire for an increase in Apple’s retail profit margins for this series of changes that has affected Apple retail store employees.
The report also went on to add that sources with “close ties to the store” said that Browett thought the stores were “too bloated” with employees and started making cuts, disregarding the “strongly-worded advice from Retail segment veterans that reducing personnel ahead of the September introduction of the iPhone 5 could create a customer service catastrophe.”
The company’s spokesperson, Kristin Huguet, told Dow Jones, “Making these changes was a mistake and the changes are being reversed, our employees are our most important asset and the ones who provide the world-class service our customers deserve."
Browett had also implemented a 25 percent pay rise for Apple Store employees after taking over from Ron Johnson earlier this year. There has been speculation that the cutting of staff was to offset the additional costs of the pay rise.