Apple Admits Mistakes In Retail Store Staffing Policy, Reverses Course Ahead Of iPhone 5 Release

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By Valli Meenakshi Ramanathan | August 17, 2012 10:46 PM EST

Apple Inc. (AAPL) admitted that recent staffing changes made in its retail stores selling iPhones, iPads and Macs were "a mistake," and it was reversing the policies, Bloomberg Businessweek reported.

Reuters
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In a communication with store leadership, John Browett, Senior Vice President, Retail, said the company had been trying a new staffing formula for retail stores that led to some employees see their hourly shifts cut and retail locations understaffed. This happened a few weeks before the company decided to revert to its older system, hoping to rectify the problem, Dow Jones stated.

In a report filed Thursday, Dow Jones mentioned that Browett instructed leadership teams to tell employees, "We messed up," according to at least two sources, who were in the know and they also stressed that while shift schedules were affected, no one was laid off.

Browett also wanted employees to know that the organization was hiring new staff. This was also reiterated in ifoAppleStore, which stated that despite these actions, Apple's job opportunities website included scores of "Current Openings" for retail stores, including some posted this week.

The denial of layoffs is in contrary to the report that emerged on Aug. 13. MacRumors, the news and rumors website, reported that Apple was laying off a number of recently-hired staff members at its retail stores.

The staffing change is occurring for the second time in a month, which has Apple reversing its decision. The moves gain significance as reports flow in ahead of a probable launch of Apple's next-generation smartphone, the iPhone 5, on Sept. 12, during which retail stores gain prominence. Usually, customers queue up sidewalks and street corners outside Apple stores nourishing hopes of being the first customer to possess the coveted smartphone.

Meanwhile, the Apple (AAPL) stock continued to surge ahead on Aug. 16, closing at $636.34, up 0.87 percent from the previous close.

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(Photo: Reuters / )
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