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

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 report that emerged August 13. MacRumors, the news and rumors website, reported Apple was laying off a number of recently-hired staff members at its retail stores.

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

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