It layed off 3,400 store workers in March (8.5 % of their total workl force) and hired lower-paid employees to replace them, They plan to cut about 130 corporate jobs. Circuit City, the nation's No. 2 consumer electronics retailer behind Best Buy, said the store workers being laid off were earning "well above the market-based salary range for their role." They will be replaced with employees who will be paid at the current market range, with obviusly less experience and incentive.
I admit, I work for corporate as a graphic designer and I'm a little "worried" to say the least. What do you all think of this strategy??
Mind you, a week after the layoffs all the executives went to Hawaii for a "meeting" - another way to cut costs I assume? Not to mention the $750,000+ salary and $700,000 in bonuses & stock options the CEO and other top execs receive ...
2007-05-31 01:29:17 · 7 answers · asked by Anonymous in Business & Finance ➔ Corporations
I recommend that you research Home Depot here at this link
http://articles.moneycentral.msn.com/Investing/Extra/HomeDepotShaftingShoppers.aspx
Robert Nardelli the terrible ex CEO of home depot performed the very same strategy. I think reading the "we let you down" from the new CEO indicating that getting rid of employees to satisfy the bottom line was terrible business. Not that I ever shopped at Circuit city before I obviously won't now. This is just another example of pure CEO greed and pandering to stock holders. They can run their business this way if they choose but most businesses in sales or service realize that you need people to perform this function. They will cut some more employees which is their right but it creates bad blood among consumers. I wouldn't be holding their stock for long because karma is like a boomerang.
2007-05-31 01:45:21 · answer #1 · answered by Anonymous · 2⤊ 0⤋
The stupid thing about Circuit City and all these GM FORD and the list go on they fire/layoff the worker bees and keep the queens The people making Million a year or eve the ones that make more than $200,000 a year are a waist plus they get stock vacation and allot more so they cut 500 workers per thousand they want to increase there pay check. As in GM FORD and all these others they will find out we fired all the help and all the loyal people now our company is in the crapper can we say bankrupt
2007-05-31 09:29:57 · answer #2 · answered by Ed M 2 · 1⤊ 0⤋
I'm a sometimes plunger in the stock markets [a "trader"].
My inspection of the stock charts of Circuit City has put it on my watch list of possible future short sales [possible future bet the shares will go down].
Although you'd know better than I, my guess from the announcement was that commission salespeople were let go and replaced with newer folk on straight hourly pay. While that may be the way Best Buy [your biggest competitor] pays their people and is certainly the way Wal-Mart [the up and coming guy who is eating your market share] pays theirs, my possible future bet is that CC sales will soon fall and so will profits.
Personal suggestion -- start looking for a job elsewhere. You already know they are looking to squeeze the overhead and that definitely includes you.
Besides, if the company does end up going bankrupt [not at all unlikely], you'll find that being an ex-employee for a firm that failed to draw in enough customers isn't a good reference for a graphic designer.
2007-05-31 01:41:49 · answer #3 · answered by Spock (rhp) 7 · 1⤊ 0⤋
For such a large company, 750K in salary and 700K in bonuses and stock options is very very very low.
The company must be on the verge of a serious downturn.
It is unfortunate for the workers but the truth is companies pay what they have to pay to get workers.
The other truth is that workers leave for better pay and all of these affected people would leave for more money if someone offered it.
You need to look out for yourself and not get personally committed to a company.
2007-05-31 07:36:41 · answer #4 · answered by Cumjunkie Doner 2 · 1⤊ 0⤋
You can buy a Dell for $300 which is more powerful than a computer built 2 yrs ago for $1200. Maybe this was there thinking.
2007-05-31 01:34:52 · answer #5 · answered by Anonymous · 0⤊ 2⤋
"The power of accurate observation is frequently called cynicism by those who don't have it."
- George Bernard Shaw (1856-1950)
2007-05-31 01:38:46 · answer #6 · answered by zevenex 2 · 0⤊ 2⤋
thats business....and going to Hawaii
is a write off
2007-05-31 02:14:39 · answer #7 · answered by DennistheMenace 7 · 0⤊ 1⤋