Circuit City Fires 3,500 Employees To Hire Cheaper Replacements

Harpozep · 03-29-2007, 07:38 AM

As we know, businesses need to make profit, so here goes the #2 electronics chain searching for more to appease the stockholders:
Upon the announcement, their stock prices rose.
But employees looking for a living wage may wish to work elsewhere.

http://www.theday.com/re.aspx?re=175...2-e07f4e05e993

"A new plan for layoffs at Circuit City is openly targeting better-paid workers, risking a public backlash by implying that its wages are as subject to discounts as its flat-screen TVs.

The electronics retailer, facing larger competitors and falling sales, said Wednesday that it would lay off about 3,400 store workers — immediately — and replace them with lower-paid new hires as soon as possible.............................

The laid-off workers, about 8 percent of the company's total work force, would get a severance package and a chance to reapply for their former jobs, at lower pay, after a 10-week delay, the company said.

While other companies, such as Caterpillar Inc., have introduced two-tiered wage systems, where newer workers make less, firing workers and offering to rehire them at a lower wage is very rare............................................

Circuit City, the nation's No. 2 consumer electronics retailer behind Best Buy Co. Inc., says the 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, the company said in a news release................"

So much for growing and prospering within this company? What ever happened to those days, when a company cared for its staff and they intern performed their best and supported the company?

No wonder employees have no allegiances to companies these days, it is a two way reciprocal avenue of mistrust, use and misuse. Many Companies clearly care not for their employee's well being and that is reflected back to them. This helps show us why shoddy service and lack of pride is often the rule of the land in the workplace. Geez..............

Just what we all need, newbies that know not what they are doing ( as they are being trained,etc ) at a big box store. Are the cheaper prices we all seek really worth this reality, laying off to rehire at lower wages and/or replacements with less experience taking over key sales roles?

Hmm, not ALL the big boxes are hurting and in turn hurting their staff:

"Circuit City's cuts come at a time when other retailers are trying to put more knowledgeable workers on store floors. Home Depot Inc., whose new chief executive is struggling to re-ignite sales growth at its stores, said it has raised pay to attract skilled tradespeople, such as carpenters and electricians.

Home Depot is adding 15,000 new jobs this year, according to spokesman Jerry Shields."

Nice to see some gargantuan category killer companies are being supportive of their staff. Perhaps all is not lost in the workplace? Though my own experiences with layoffs, takeovers, downsizing and outsourcing may have permanently colored my views of the corporate word.

Too bad CC is on the ropes and feels it has to do this, I think when/if word gets out their behavior there will be some backlash. But likely not enough to hurt it any more than all the untrained newhires will!

I for one am through with them after this. Heck it took most of a decade for me to trust them again after their DIVX debacle!

**HTF Ads**

EricSchulz · 03-30-2007, 11:54 AM

Should we start a pool to see how long it is before there's a report on some outrageous compensation plan for the CEO? As someone who has been in retail for most of the past 25 years, let's just say that this doesn't shock me. It's always been "easiest" to cut the payroll/employees starting at the bottom rather than trimming fat from the top....

Qui-Gon John · 03-30-2007, 01:39 PM

Circuit City Sucks!

I ordered a flash drive online on 3/17 for in-store pickup, they said it was in-stock. Got there later that day, they didn't have it. Went back on 3/22, still didn't have it, so they cancelled the order. Just checked online yesterday and my CC was still not credited for the cancelled order. I had to call, then talk with the local store manager and now they say they submitted the credit. Waiting to see it show up on my CC.

JustinCleveland · 03-31-2007, 11:53 AM

Quote:

Originally Posted by Qui-Gon John

Circuit City Sucks!

I ordered a flash drive online on 3/17 for in-store pickup, they said it was in-stock. Got there later that day, they didn't have it. Went back on 3/22, still didn't have it, so they cancelled the order. Just checked online yesterday and my CC was still not credited for the cancelled order. I had to call, then talk with the local store manager and now they say they submitted the credit. Waiting to see it show up on my CC.

And make sure you get the 24-dollar gift card. Ready in 24 minutes my butt!

Qui-Gon John · 03-31-2007, 02:03 PM

I did, when I was at the store. So I used that for a 2 pack of the same 1GB flash drives I was going to get. I spent a bit more money, but these are really good, (physically small, flip type-no extender, no cap to lose), flash drives.

Chris S · 04-04-2007, 09:21 AM

Well Circuit City just lost my business for the rest of this year, if not forever. I just can't support any company that would pull such an unethical (IMO) move against their employees.

JohnRice · 04-04-2007, 05:48 PM

Quote:

Originally Posted by Chris S

Well Circuit City just lost my business for the rest of this year, if not forever. I just can't support any company that would pull such an unethical (IMO) move against their employees.

You'll have to be sure you stop doing business with a lot more companies. So many, the ones who don't do this are probably in the minority.

Malcolm R · 04-07-2007, 10:00 PM

I don't get why they need to fire them, then hire replacements at lower rates. If they want to cut wages, can't they just cut them? A firm I used to work for instituted across the board 10% pay cuts after I left, but they didn't fire then re-hire anyone.

Understand, I'm not defending the firing or the wage cutting, but it seems too bad that a few of these staff who might want to stay on at the lower wage will have to go through the process of being fired/re-hired instead of just having their hourly wage lowered in the HR computer system.

Personally, I think CC should just reduce its staffing, period. In my store, the staff on the salesfloor frequently outnumber the customers. And they're all usually gathered in packs of 3-4 to socialize rather than trying to assist customers.

Chris S · 04-09-2007, 08:58 AM

Quote:

Originally Posted by JohnRice

You'll have to be sure you stop doing business with a lot more companies. So many, the ones who don't do this are probably in the minority.

Unfortunately you are correct and it's the main reason that I refuse to shop at some stores. Companies earn my business with more than just the price of their goods.

alan halvorson · 05-21-2007, 03:00 PM

Quote:

If they want to cut wages, can't they just cut them?

Probably because they also want to eliminate some benefits, mainly health insurance. That's what a local company did - fired everyone, then rehired them without their health insurance. Pretty sleazy, I think.

TV555 · 05-21-2007, 06:59 PM

Everyone boycotted them for DIVX, but this is the 2nd time they have fired their older and more experienced employees.

No one really cares. They made a good financial move, b/c even if they used sweatshop labor in China for all their products we'd jump at going to get things for 5% off.

Circuit is not an innovative company they simply react to what customers want as long as they make some money in the process.

Blame Circuit all you want, but the modern customer holds a salesperson in contempt and somehow can't admit that to himself.

Chris Lockwood · 06-14-2007, 11:17 AM

Why should employees expect to make "well above the market-based salary range"?

If the new wages at CC are too low, these people can get jobs elsewhere.

As a consumer, if the store across the stree