Curcuit City plans to fire 3,400 “over-paid” employees and hire replacements. That a company could even think this is a good idea is astounding. (Much less publicly admitting the motive!)
Sure, you might lower your wage costs somewhat – but exactly who do you want staffing your stores? If this isn’t a signal to short CC stock, I don’t know what is. Smells of desperation to me.
When a company does something like this – they almost always try to keep the good employees – but how do the best employees react to such initiatives? They question their own future with the company and go find a new job. Who’s left behind? Those incapable of finding a new job – OUCH!
Pile on the predictable Sr. Management hypocrisy about “employees being our most valuable asset”
From the CC 2006 Annual Report
“We believe our 46,000 Associates represent our best source for finding solutions for our customer’s needs.”
Need I say more?
The consumer electronics retailer announced Wednesday that it was immediately firing store associates “who were paid well above the market-based salary range for their role.” New workers will be paid less, although Circuit City did not reveal the pay of the workers.