New Apple retail VP John Browett planned to cut jobs to raise profits

Posted:
in General Discussion edited January 2014
Reports that recent hires at Apple Stores were being laid off, followed by claims they weren't, are now being explained as a reversal of a policy enacted by Apple's new retail vice president John Browett in an attempt to cut costs and raise profits within the retail segment.

According to a report by IFO Apple Store, "a series of recent administrative moves to reduce the number of Apple retail store employees" has been blamed upon an effort by Browett to increase Apple's retail profit margins.

The report cited sources with "close ties to the retail stores" who said Browett felt the stores were "too bloated" with employees, and began making cuts "despite strongly-worded advice from Retail segment veterans that reducing personnel ahead of the annual Back-to-School promotion and the September introduction of the iPhone 5 could create a customer service catastrophe."

Browett reportedly ordered Apple Store managers to cease all recruiting and hiring events, stop making promotions, lay off all newly hired employees still in their probationary period, reduce available hours for part time employees, reduce or eliminate overtime and layoff or fire employees who can only work more than 32 hours a week.

John Browett
John Browett, Apple's new SVP of Retail. | Credit: Dixons


The report also noted that Browett said Apple's retail outlets need to "learn to 'run leaner' in all areas, even if the customer experience is compromised."

During fiscal 2011, Apple's retail stores generated $14.1 billion in revenue and $3.1 billion in profits. The chain has operated at around a 22 percent profit margin over the past five years, the report notes, and Browett was seeking to improve upon that. Retail operations currently contribute about a tenth of Apple's profits.

In January, Apple recruited Browett to head its retail operations. He formerly served at the chief executive for Dixons, a discount European tech retailer, and before that Tesco.com, the British equivalent to Wal-Mart.

Writing for The Loop, well-known Apple blogger Jim Dalrymple wrote, "it seems to me that Browett is trying to make Apple retail just like every other retail store on the planet. A few employees trying to satisfy an ever growing consumer base. That formula doesn?t work. It may save a few dollars in the short term and Browett may look like a hero on paper, but in reality the whole company would suffer the consequences."
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Comments

  • Reply 1 of 223
    tulkastulkas Posts: 3,735member
    How did this idiot end up at Apple? Never thought he was a good fit. He is the new Papermaster.
  • Reply 2 of 223
    I CALLED IT. I knew Browett was behind the staff reductions. Tim Cook needs to send this guy packing, immediately.
  • Reply 3 of 223
    John, are you serious?

    Apple made enough profit for the whole year... Keep what you got! It's a great system, and really?! Running leaner?

    You're trying to make Apple money-crazed and COMPROMISE CUSOMER SERVICE?
    If Steve was here, he'll cut you like you did with the new employees.
  • Reply 4 of 223


    Did Cook even know about this before this moron put this into effect???  Fire his a*s, NOW!

  • Reply 5 of 223
    dysamoriadysamoria Posts: 1,817member
    If a bunch of forum readers can call it like that, how the hell did this guy get hired?
  • Reply 6 of 223
    mj1970mj1970 Posts: 9,002member


    Oh dear. This is bad. Seems this guy is not Apple.


     


    It's one thing to examine how efficiently the operation is running. But this is the problem here:


     


     


    Quote:


    The report also noted that Browett said Apple's retail outlets need to "learn to 'run leaner' in all areas, even if the customer experience is compromised."



     


    Wow.

  • Reply 7 of 223


    Why doesn't he cut his salary to save the company money? Oh, because he isn't one of the little people that makes the stores function. Out of sight, out of mind. I hate corporations that do that crap. Who stopped this? That would be interesting to know.


     


    Whoever hired him or did the research on him should be in trouble, AND it also makes me wonder about the management that approved his being hired. If it was Tim Cook then this shows he is capable of making mistakes and thinks about the money more than the brand.

     

  • Reply 8 of 223
    mazda 3smazda 3s Posts: 1,532member


    http://www.nasdaq.com/article/apple-retail-leadership-tells-stores-it-messed-up-employee-working-hours-refutes-layoffs-20120816-00774


     


     


     


    Quote:


    In a communication with store leadership teams, senior vice president of retail, John Browett, who took the reins of Apple's retail stores in April, said that the company had been trying a new staffing formula for its retail stores, leading some employees to see their hourly shifts cut and retail locations to be understaffed. This happened for a few weeks before the company decided to revert to its older system, hoping to rectify the problem.


    He instructed leadership teams to tell employees, "We messed up," according to two people who were aware of the communication, which also stressed that while shift schedules were affected, no one was laid off. He also wanted employees to know that it was hiring new staff, these people said.




     


    Oh boy, everything people were saying about Browett when Cook hired him is true.

  • Reply 9 of 223
    irontedironted Posts: 129member


    Great, another fucktard for Apple!  :)  


     


     


    America is full of fucktards anyway!

  • Reply 10 of 223
    ewanewan Posts: 36member


    This idiot is the reason I couldn't get a replacement charger at the Apple Store the other day. I was told I need to make a Genius Bar appointment the next day to get a new one. Seriously? I have to come back for a freaking replacement charger? That's so unreasonable.

  • Reply 11 of 223


    Yeah, like their stores' profit margins weren't high enough. This guy has no clue about what makes Apple great. Definitely not a good fit for the job. He'd better wise up or ship out.

  • Reply 12 of 223


    I've known managers like this. He is going to be an unmitigated disaster. Get rid of him now.


     


    (During my college-age career as a food server, I worked for a manager who quit replacing broken dishes to save money. Eventually, we lacked clean dishes when it was time to serve the food.)

  • Reply 13 of 223
    solipsismxsolipsismx Posts: 19,566member
    [S][/S]**** this myopic motherfucker! You lay off just one employee and you create fear that all could be laided off. Your best, most knowledgable employees might look for work elsewhere and all employees will have less of an interest putting their heart and soul into their job if they know the company they work could jettison them on accounting whim.

    Apple is the most successful retail chain by square feet and one of those reasons is because you can you get service. This will do more longterm harm than any good than increasing profits by a fraction of a fraction of a percent for a quarter or two. **** him!
  • Reply 14 of 223
    allblueallblue Posts: 393member


    When Browett was appointed there was a flood of comments here from people in the UK warning about the disaster that Dixons was as a customer experience. There was widespread astonishment that Apple, having built a huge, highly popular and very profitable chain using a philosophy diametrically opposed to the 'slash and burn quick boost in profits followed by long-term decline' strategy utilised by this chancer should employ him. Big mistake, and here we see the result.

  • Reply 15 of 223
    Service is what Apple sells at retail. It's the only reason for the stores to exist. If he didn't get that coming in he doesn't belong at Apple.
  • Reply 16 of 223
    magoomagoo Posts: 8member


    This guy's a clown

  • Reply 17 of 223
    mazda 3smazda 3s Posts: 1,532member

    Quote:

    Originally Posted by SolipsismX View Post



    **** this myopic motherfucker! You lay one employee you create fear that all could be laided off your best, not knowledgable employees might look for work and all employees will have less of an interest put their heart and soul into their job.

    Apple is the most successful retail chain by square feet and one of those reasons is because you can you get service This will do more longterm harm than any good in will produce in increasing profits by a fraction of a fraction of a percent for a quarter or two. **** him!


    Wow, I don't think I've EVER seen you get this upset. Man, I guess this really has struck a nerve.


     


    **Slowly back away**

  • Reply 18 of 223
    ironted wrote: »
    Great, another fucktard for Apple!  :)  


    America is full of fucktards anyway!

    That maybe true, but isn't this clown a Brit?
  • Reply 19 of 223

    Quote:

    Originally Posted by IronTed View Post


    Great, another fucktard for Apple!  :)  


     


     


    America is full of fucktards anyway!



    born and raised in UK, been there until he just joined Apple

  • Reply 20 of 223


    This dude is the archetype of so many bosses in corporate America. The money is pouring in but it is never, ever enough.


    There is 2 trillion in off shore profits being hoarded by corporate fat cats and that is one of the reason their aint no damn jobs.


    Believe  me corporate America isn't concerned about putting people on the payroll. They are more concerned about PROFITS. 


    The GOP can complain all they want  about Obama and the job situation but in reality the corporate bosses don't give a sh**  about hiring to lower unemployment.

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