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Circuit City Fires 3,500 Employees To Hire Cheaper Replacements

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#1 of 17 OFFLINE   Harpozep


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Posted March 29 2007 - 12:38 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.


"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..............Posted Image

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!

#2 of 17 OFFLINE   EricSchulz



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Posted March 30 2007 - 04:54 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....

#3 of 17 OFFLINE   Qui-Gon John

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Posted March 30 2007 - 06:39 AM

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.

#4 of 17 OFFLINE   JustinCleveland



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Posted March 31 2007 - 04:53 AM

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

#5 of 17 OFFLINE   Qui-Gon John

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Posted March 31 2007 - 07:03 AM

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.

#6 of 17 OFFLINE   Chris S

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Posted April 04 2007 - 02:21 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.

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#7 of 17 OFFLINE   JohnRice


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Posted April 04 2007 - 10:48 AM

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.

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#8 of 17 OFFLINE   Malcolm R

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Posted April 07 2007 - 03:00 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.
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#9 of 17 OFFLINE   Chris S

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Posted April 09 2007 - 01:58 AM

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.
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#10 of 17 OFFLINE   alan halvorson

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Posted May 21 2007 - 08:00 AM

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.
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#11 of 17 OFFLINE   TV555


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Posted May 21 2007 - 11:59 AM

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.

#12 of 17 OFFLINE   Chris Lockwood

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Posted June 14 2007 - 04:17 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 street has an item cheaper, we all run right over there, but when a company does the same thing, they get demonized. And if a CC employee quit because he found a better-paying job elsewhere, nobody would blame him for leaving. Nobody has a right to a job at a specific company. It is a mutual agreement that either side can end at any time. I think what's unusual about this story is that the company is announcing the policy, rather than just keeping quiet about it (which would seem to make more sense). I've never detected any skills of employees at these stores that would justify a pay level much above whatever the starting wage is, so I see CC's point here. If someone can be replaced by the average person off the street, they shouldn't expect a wage way above entry level. BTW, when I've bought stuff online there for in-store pickup, the item was always ready by the time I got to the store.

#13 of 17 OFFLINE   Chris S

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Posted June 14 2007 - 04:44 PM

Which is a sign that the employees are doing a good job. When you do a good job at work you tend to be compensated more favorably for it. And then, according to Circuit City, you deserved to be fired because of this compensation. CC Corporate: "Thanks for the hard work! Here's a little more money to show our appreciation and to show our desire to keep you as an employee. O'wait... sorry, now you make too much. Thanks again for the hard work, you're fired."
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#14 of 17 OFFLINE   TV555


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Posted June 15 2007 - 09:03 AM

That's what it means to be a good company man - less than market pay, doing your job, taking care of business everyday, no benefits, and hoping one day after years of hard work that you to will be invited to the back and fired in a calculated stabbing of the back.

Next time your CC helper pretends not to hear you and walks away, well... I get it and unlike others don't believe it's always been like that.

I'd love to see a new CC commercial where the kid brings in his newspaper cutting of a lower price and everyone ignores him until some sub-manager shows up and explains to him that the newspaper clipping is a one time promotion by a store farther than their 2 mile radius and even if they could they would have to call and verify that the store had inventory in stock at said price, b/c of the string of photoshoppers. Also, if the kid expected to return it there would be a 15% restocking fee and only a giftcard return w/ $5 removed for no manual and $5 for the box. Then you zoom in on the kid crying and then some CC 6 month slogan "At least we're not Wal-mart Posted Image"

#15 of 17 OFFLINE   PhillJones


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Posted July 14 2007 - 09:20 AM

Since we're all putting the boot into CC. I haven't shopped there since I bought a reciever on open box special and foolishly bought their extended warranty. It said on the leaflet that it went over and above the manufacturers warranty. However, when a channel went dead and I took it in. They 'authorized' a return because it was 'irrepearable', and made out they were doing me a massive favour. Unfortuneatly, they'd only give me store credit which wouldn't cover a new receiver. So I'd have to give them a bunch more money in order to leave with a working receiver even though it was under warranty. I got them to give me the unit back and went to a real Harmon Kardon dealer who fixed it under warranty at no charge. As I said, I ain't been back to CC since and I never will. Apparently, this is standard practise for them, being foreign, I did not know this but I'm quite surprised that any of you guys shop there at all given the way they're known to opperate.

#16 of 17 OFFLINE   Lenard



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Posted July 18 2007 - 09:36 AM

As a active and now retired member of the U.A.W., with more than 32 years of service, It pains me to see yet another company lowering itself to this level of un-American behavior. unfortunately this is a pattern set many years ago in the Ronald Regan era. Remember the Air traffic controllers were all fired, while working under a expired contact and replaced with scab workers the next day. That was the "tip of the ice berg", the start of the two tier wage system in this country. Almost no one rallied around those fired workers, time passed and more companies now rush to use this new abuse on the American workers. We have been in a continued rapid spiral ever since the firing of those controllers. As a people we have become way to complacent as our jobs continue to move to Mexico, China and third world sweat shops. Now C C without even threatening to move comes in and announces the firing of their workers. Now the workers are left to fight among themselves and others who desperately need them We must remember that change is possible when the power of one vote is combined with others wanting change.

#17 of 17 OFFLINE   Dave Moritz

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Posted April 29 2008 - 08:17 AM

Re: Circuit City Fires 3,500 Employees To Hire Cheaper Replacements

This is one of the reasons why I will not buy anything from Circuit City ever. Then there is the salesperson that does not know much about the product they are selling, that is if you can find someone to help you. This is why I give my business to stores with better selections, better trained sales associates and stores that actually to give me shiat when I have a problem.

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