Gosh, What a Surprise

[forsyth]

theferrett sent a letter to Circuit City the other week, about their firing their 3,400 most experienced and highest paid employees. Which inspired me to do so also, and I just got back a form letter (of course).

But today, he posted a link to this article from the Washington Post: Circuit City's Job Cuts Backfiring, Analysts Say.

""I think even though sales were soft in March, this is clearly why April sales were worse. They were replaced with less knowledgeable associates," said Tim Allen, an analyst with Jefferies & Co.

In particular, the televisions showing disappointing results are "intensive sales" requiring more informed employees, Allen said. "It's a big-ticket purchase for somebody. And if they feel like they're not getting the right advice or are being misled by someone who doesn't know, it would be definitely frustrating. They will take their business elsewhere.""

Can you say Duh?

And Circuit City's stock's dropped about $3 since the actual firings. Maybe Wall Street's wising up to the fact that "downsizing" usually isn't great for companies? I can hope.

Comments

[the-s-guy.livejournal.com]

Apparently someone in management isn't smart enough to distinguish between "persuading the best people to stay and getting rid of the deadwood" and "encouraging everyone to go in such a manner that it's easiest and most profitable for our best people to go first."