Jackassery
Apr. 2nd, 2007 12:40 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
forsythFrom the Department of Stupid Plans: Circuit City Plans to Replace 3,400 Workers in Stores
"RICHMOND, Va. -- Circuit City Stores Inc. said Wednesday that it plans to cut costs by laying off about 3,400 retail workers, or 8.5 percent of its in-store staff, and hiring lower-paid employees to replace them. It is also trimming about 80 corporate information-technology jobs.
Circuit City, the nation's second-biggest consumer electronics retailer, behind Best Buy Co. Inc., said the store workers being laid off were earning "well above the market-based salary range for their role." They will be replaced as soon as possible with employees who will be paid at the current market range, the company said.
"We are taking a number of aggressive actions to improve our cost and expense structure, which will better position us for improved and sustainable returns in today's marketplace," said Chief Executive Philip J. Schoonover.
Circuit City employs about 40,000 part-time and full-time store employees, according to spokeswoman Jackie Foreman. Those being laid off will get severance packages and can apply for any open positions after 10 weeks, Foreman said.
The company plans to replace all 3,400 workers "as quickly as store directors are able," she said.
"Firing 3,400 of arguably the most successful sales people in the company could prove terrible for morale," Colin McGranahan, an analyst with Sanford Bernstein & Co., wrote in a research note. "The question remains as to whether Circuit City can rebuild in time for the all-important holiday season."
The sales people being fired weren't given an option of taking a pay cut, a spokesman said. He declined to give the pay rate for fired workers or the expected wages for new hires."
Okay, so there's many levels of jackassery here. First, the company's firing 3,400 workers for no reason other than they don't want to pay them what they're worth. Then, there's the whole idea of it. How did this come up at a board meeting? "Hey guys! I know what'd be a good way to save money! Let's fire our best workers and hire newbies to replace them!" Seriously, where the hell does that make any sense at all? Fire your best people and then have to train new people, and end up selling less stuff because you've gotten rid of the few competent employees at the store.
Great work, corporate America!
"RICHMOND, Va. -- Circuit City Stores Inc. said Wednesday that it plans to cut costs by laying off about 3,400 retail workers, or 8.5 percent of its in-store staff, and hiring lower-paid employees to replace them. It is also trimming about 80 corporate information-technology jobs.
Circuit City, the nation's second-biggest consumer electronics retailer, behind Best Buy Co. Inc., said the store workers being laid off were earning "well above the market-based salary range for their role." They will be replaced as soon as possible with employees who will be paid at the current market range, the company said.
"We are taking a number of aggressive actions to improve our cost and expense structure, which will better position us for improved and sustainable returns in today's marketplace," said Chief Executive Philip J. Schoonover.
Circuit City employs about 40,000 part-time and full-time store employees, according to spokeswoman Jackie Foreman. Those being laid off will get severance packages and can apply for any open positions after 10 weeks, Foreman said.
The company plans to replace all 3,400 workers "as quickly as store directors are able," she said.
"Firing 3,400 of arguably the most successful sales people in the company could prove terrible for morale," Colin McGranahan, an analyst with Sanford Bernstein & Co., wrote in a research note. "The question remains as to whether Circuit City can rebuild in time for the all-important holiday season."
The sales people being fired weren't given an option of taking a pay cut, a spokesman said. He declined to give the pay rate for fired workers or the expected wages for new hires."
Okay, so there's many levels of jackassery here. First, the company's firing 3,400 workers for no reason other than they don't want to pay them what they're worth. Then, there's the whole idea of it. How did this come up at a board meeting? "Hey guys! I know what'd be a good way to save money! Let's fire our best workers and hire newbies to replace them!" Seriously, where the hell does that make any sense at all? Fire your best people and then have to train new people, and end up selling less stuff because you've gotten rid of the few competent employees at the store.
Great work, corporate America!
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no subject
Date: 2007-04-03 10:22 am (UTC)Of course, it will send the company into the toilet in the following months, but by then the party responsible will have cashed out and be sitting on a beach snorting hookers off other hookers.