Apple retail sheds 1,600 full-time positions
Apple is in excellent financial shape, but at the expense of about 1,600 full-time retail positions.
(Credit: Corrine Schulze/CNET)Apple's retail group shed about 1,600 full-time equivalent workers during its second fiscal quarter.
Apple's second fiscal quarter was a blowout considering the state of the economy, but executives noted that the retail division took a hit during the quarter, with average revenue per store declining to $5.9 million from $7.1 million a year ago. With overall revenue from that segment increasing just 1 percent to $1.74 billion and with 45 new stores having been opened since last year, something had to give.
The retail arm of the company now employs 14,000 full-time equivalent workers, down from 15,600 at the end of Apple's first fiscal quarter, according to a filing with the SEC. Reports surfaced late last year that Apple was looking into ways to reduce the number of hours worked by part-time employees as a hedge against a coming recession.
Apple opened just one store during the quarter. In January it said that it plans to ease back on the number of stores it opens in 2009, which seems prudent amid a global economic downturn.
Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom. 
Priceless!
It's a fact of life and best to just move on.
its call "we don't give a **** about you" from apple to you fanboys
p.s I never said MS is any better, But its just awesome how the so called peoples company is treating its little people!
Some of you same Apple fanboys gloated when Microsoft had layoffs, now you have to eat some humble pie. Layoffs are a sad fact that is nothing to laugh or gloat about. Whether it's Apple or Microsoft the behavior of some of you fanboys are pathetic and shameful.
"As apposed to say, Microsoft, who layed off 5000 workers and then built a new soccer stadium with the savings? "
Let's see... they didn't lay off that many people- that's a number the news dredged up with incorrect information combining past layoffs and potential future layoffs that haven't happened or may not happen at all.
Second, the new campus (Commons) was planned more than a decade ago and has been under construction now for years, long before any layoffs were a possibility.
Reasearch instead of heresay will help greatly in your future comments.
@ mikestatic1
"its call "we don't give a **** about you" from apple to you fanboys
p.s I never said MS is any better, But its just awesome how the so called peoples company is treating its little people!"
I tell you what then. You name me one major company that isn't treating the little man like S#%@!!. Don't worry, I'll wait!! If hate Apple, that is completely your right, but enough with the selective FUD already.
@lenrooney, what soccer stadium? If you have to resort to made up facts then your statements lose all credibility.
"Some of you same Apple fanboys gloated when Microsoft had layoffs, now you have to eat some humble pie. Layoffs are a sad fact that is nothing to laugh or gloat about. Whether it's Apple or Microsoft the behavior of some of you fanboys are pathetic and shameful."
Maybe so should read this:
http://www.daylife.com/article/09yo427asb2NQ?q=Steve+Ballmer
Now, how would like your pie served? Perhaps with a side of crow. I do agree that layoffs are no laughing matter, but keep the facts as facts and the FUD as FUD!!
Pardon? I've never heard Apple called that before.
Thanks for that link to the article. I always assumed that the Mac blogs were petty and small minded and its good to have some confirmation of that.
[CNET editors' note: Prohibited content deleted.]
Mac sales are down, but iPhone sales are up. That's the revenue generator these days which makes me realize just how genius Apple was to change their name and focus from computers to consumer electronics. By spending more time and focusing on iPhones and iPods and less on computers, they have found a way to hedge their exposure to economic downturns.
Apple outsourced technical support to India as well way to call the kettle black.
http://www.tuaw.com/2006/03/09/apple-to-outsource-tech-support-to-india/
Mac sales are down
not as much as webster would like the internet to think though
@mike
where are you getting that he hates Macs because he can't afford one?
MORE MICROSOFT LAYOFFS THAN REPORTED, UP TO 5,000 PEOPLE.
April 20, 2009 12:56 PM
Analyst: More layoffs at Microsoft possible
Posted by Sharon Chan
Sid Parakh, analyst at McAdams Wright Ragen, released a report today ahead of Microsoft's earnings report saying that Microsoft could be considering job cuts beyond the 5,000 announced in January.
"As a likely consequence of tougher business conditions, our checks indicate that Microsoft may embark on another round of restructuring in the near future," Parakh wrote. He said he did not have details on size, time frame, location, business units, timing or whether it would affect outside contractors.
He also said he expects earnings results to be lower than previously projected, although the company did not provide financial guidance in the last call.
It would be a change in tone from what the company was saying as recently as a week ago, when head legal counsel Brad Smith said at an Elevate America news conference, "There have been no changes in outlook going forward" regarding layoffs.
The company still plans to cut 5,000 total jobs through 2010, including the 1,400 announced in January. Smith also said the company still plans to create 2,000 new jobs in that period.
The third-quarter earnings report is scheduled for Thursday.
Update 3:14 p.m.: I reached Microsoft spokesman Lou Gellos, who sent over this statement: "As we said in January, we will continue to assess the market and economic situation over the next 18 months and make adjustments as needed. Beyond that, we have no other details to share."
"I'm guessing you are a failed Mac Genius applicant ..."
I'm afraid you are giving this clod more credit than he deserves. I'd say he is a failed MacDonald's applicant.
As for the others bickering... stop it. The economy is tough for alot of people right now, sales are down for alot of companies. Now is not the time to brag about who lost what... especially if you happen to be one of those 1,600 souls for apple or the thousands of others who no longer work for other companies across the country.
they pulled out of India a long while back because it didn't meet Apple standards
infact they recently increased their Austin centre support staff
you might want to stay of the Microsoft Brainwashing propaganda a bit
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The term "full-time" is also bogus, as it is "full-time EQUIVALENT" which means 2 20 hour workers = 1 40 hour worker.
So, what's the story? Apple staff after Christmas?
WOW. Stop the presses. ;)
Again, wow. What retailers didn't?
It is really a 15% cut on full-time equivalent. Basically, it is possible that all employees get 15% cut in hours.
I can't believe there would be anyone so anti-Apple they would be happy over employees losing their jobs. From reading the above comments, I was sadly mistaken.
There are surely appropriate fanboy vs fanboyee topics to he had, and I can enjoy those, but some of the 9-year olds here are an embarrassment to the industry and should be banned.
...Unless, CNET enjoys the hits too much?
I bet CNET loves all the Hate wars going around, BET they have contest called which writer can get the most posts on a topic = )
And y'know, I used to believe in the stereotype of the smug obnoxious Mac user. And they're out there. But after owning a Mac and seeing the level of absolute unreasoning vitriol Mac users get, I've realized that a lot of the "smug obnoxiousness" is in these folks' minds: if you own a Mac, then you fit that stereotype and you deserved to get kicked for it repeatedly, case closed.
go look at any zune article, you'll see the ass's of Apple. Go look at any article about microsoft and it's the same thing. Both sides are unreasonable.
Yeah, and the only ones "buying" PC laptops are the ones MS pays to in those great commercials - you know, the "picky ones"?
LOL
[CNET editors' note: Personal attack deleted]
What a misleading headline and article - please read the article again.
" Apple's retail group shed about 1,600 full-time equivalent workers..." the important word here is 'equivalent', basically Apple cut hours NOT jobs.
Or more accurately Apple stopped giving out extra hours to their part-timers - Apple hasn't, I repeat hasn't cut retail jobs. You would think the writer would have made that clearer.
If it makes anyone feel better, lots of overtime coming up late this Summer when the iPhone III hits the market.
06Q2 4851
06Q3 5384
06Q4 5787
07Q1 6612
07Q2 6348
07Q3 7300
07Q4 7900
08Q1 11400
08Q2 12000
08Q3 13600
08Q4 15900
09Q1 15600
09Q2 14000
Above are the numbers of Apple Retail Store full-time equivalent employees
Fiscal Year 2006 to date
The question is not why Apple cut back this quarter since they did the same 07' and during the same time 06' 08' Their hiring pace slowed considerably also. The question is why the surge in 08Q4?
Unfortunately the answer is rather obvious and boring:
iPhone 3G launch, they sold 6.8M during the 90 days.
Story Ends.
http://mediamemo.allthingsd.com/20090424/did-apple-just-fire-1600-retail-workers-nope/
Media Memo is responding to the dozens of writers who labeled this a 10 percent cut in Apple's retail division, which is absolutely not what this article says. The positions have gone; we don't know how they vanished, whether it was through staff cuts, cutbacks in hours to part time workers, or something else. And we don't presume to say how Apple reduced the staff.
But nonetheless, Apple decided over the quarter that it did not have room for the equivalent of 1,600 full-time positions in the retail group. They are not disclosing how they sliced that reduction.
And for those of you who are calling this a cut in Christmas staffing, you'll note that Apple increased retail staff coming off fiscal Q1 (the Q4 calendar quarter) in both 2006 and 2008, as AllenKids helpfully backs up. Apple did make such a cut in 2007, but there's obviously precedent both ways.
No Tom you didn't say "Apple laid off PEOPLE". But you sure didn't make it very clear either - especially the click whoring headline, "Apple retail sheds 1,600 full-time positions", be honest to yourself what do you think that headline implies. And NO, using the word 'equivalent' in a line isn't being clear.
If some came to you and said Apple cut 1,600 retail positions - what would you have thought?
You were clearly misleading the reader here for hits and effect, and you know it.
No matter how you slice it, Apple made a decision to save money in its retail division. And that is worth noting.
Here's a formal definition of full-time equivalent:
http://faq.bea.gov/cgi-bin/bea.cfg/php/enduser/std_adp.php?p_faqid=368&p_created=1175542602
I wasn't asking for a link to a definition but a clearer sentencing or explanation of this "technical term" would have suffice, as you have done so in your replay - (though I did pick up your sarcastic tone in this sentence of yours).
I ask you again as you totally avoided my primary point in my last post:
So as a "journalist" and in consideration to the way you wrote the article do you think the majority of the readers clearly understood the article accurately.
- Tip: If you need help with that answer, read the comments.
The point is this: Massive ramp up during 07/08 followed by a decline in 09. Pretty much the same as most companies in their position, particulalry when a popular new product is launched.
This isn't 'anti-Apple bias' this is reality. Plot the figures given above in a graph if you doubt it.
I personally think this unprecedentedly steep job cut are mainly contributed by two factors.
1. routinely seasonal labors cut after Christmas.
2. Only one new Apple Store opening which means few new full-time job offering.
Nonetheless, considering its revenue per store shrunk 17% YOY. Such job cut is expected for a micro managed company I suppose.
And kudos for your data mining skill.
and don't forget they fired Jobs too,
that worked out for him:-)
Its a do it yourself world, always has been. Much respect to those out there that keep on P.U.S.H.I.N.G
DID APPLE FIRE 1600 PEOPLE? NOPE.
FOLLOW THE LINK :
http://mediamemo.allthingsd.com/20090424/did-apple-just-fire-1600-retail-workers-nope/
( do not steal news )
Not to grill you Tom, but if you want to be accurate and the 10K says full-time equivalents, then your headline ought to say "Apple retail sheds 1,600 full-time equivalents". Full-time positions are very different in the accounting world, though the costs / savings are about the same.
- by stefanvolos April 28, 2009 11:30 AM PDT
- Uh-oh... Apple better call all those laid-off employees back to The Store. Their new iMacs shipping with the ATI Radeon HD 4850 graphics card are all locking-up on their customers, and apparently this is a problem that requires a reservation at the Genius Bar and some physical repairs!! (Hurry back, Steve Jobs... These faulty iMacs wouldn't have shipped out on your watch, would they?)
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