Apple Stores Facing Budget Cuts, Low Morale

Sources say customer satisfaction taking a back seat to sales numbers.

The Apple Store has been touted as the model for retail stores. But a new report says the chain's ongoing budget cuts are not going down well with employees.

Citing information from a variety of inside sources, blog site ifoAppleStore claims that the stores are changing "employee performance standards" to focus more on sales and profits over customer satisfaction.

Apple's retail VP, John Browett, reportedly admitted that the company "messed up" when it implemented a new system that cut hours for some employees and left certain Apple stores understaffed. Trying to reassure concerned employees, Browett told them that no layoffs were planned and that Apple was still hiring new workers.