Circuit City

[Ray_BearKat]

heard they fired every employee making over $11/hr this morning...I'll look for the article.


imagine walking into work getting your last paycheck and them tell you to get lost...

[Ray_BearKat]

Circuit City to Lay Off 3,500 Employees
Wednesday, March 28, 2007



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RICHMOND, Va. —

Circuit City Stores Inc. (CC) said Wednesday it plans to cut costs by laying off about 3,400 store workers and hiring lower-paid employees to replace them, and by trimming about 130 corporate jobs.

Its shares rose 3 percent in morning trading.

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

"We are taking a number of aggressive actions to improve our cost and expense structure, which will better position us for improved and sustainable returns in today's marketplace," Philip J. Schoonover, Circuit City's chief executive, said in a statement.

The Richmond-based company also plans to outsource its information-technology infrastructure operations to International Business Machines Corp. (IBM), a move that is expected to cut IT expenses by more than 16 percent. About 50 of Circuit City's IT workers will move to jobs with IBM and remain on the Circuit City contract. The other 80 corporate positions will be cut.

The changes follow the company's announcement this winter of planned cost-cutting measures and management moves to improve sales and cut expenses.

In February, Circuit City terminated its lease on a previously closed distribution center in Columbus, Ohio, at a loss of $4.8 million, but the move is expected to cut costs associated with the lease by about $6 million. It also finished a previously announced closing of a Louisville, Ky., distribution center that was used primarily for store fixtures and signs.

In Circuit City's international operations, the company has hired Goldman Sachs (GS) to advise the company on strategic options for its InterTAN Inc. unit, which could include selling the business.

Circuit City closed about 55 stores in Canada in February as previously announced, and expects to close about 10 more stores in the first half of fiscal 2008.

Its shares rose 59 cents to $19.47 in morning trading on the New York Stock Exchange.

[kaorder1999]

that sucks!

[Emerson1]

Noooooo!!! They should of just started closing down stores so we could get big discounts.

[kaorder1999]

i dont think i have EVER bouight anything from that place!

[Emerson1]

We used to buy from there all the time. That was with jason\'s employee discount though.

The only thing lately we have got was our TV and some speakers for my computer. I like best buy a whole lot better.

[piratebg]

Originally posted by Emerson1
We used to buy from there all the time. That was with jason\'s employee discount though.

The only thing lately we have got was our TV and some speakers for my computer. I like best buy a whole lot better.


Best Buy or Walmart for me. The only thing I bought from Circuit City was a camcorder like 4 years ago.

[Maroon87]

I used to work at Circuit City many moons ago. I got to drive that little forklift around the warehouse area.:cool:

[Ranger Mom]

Originally posted by Emerson1
We used to buy from there all the time. That was with jason\'s employee discount though.

.

I guess it's good you can't get that discount anymore...he probably would have got the axe too!!:)

[kaorder1999]

Originally posted by Ranger Mom
I guess it's good you can't get that discount anymore...he probably would have got the axe too!!:)

you are right..he might have gotten the boot!

[crzyjournalist03]

Had a similar thing happen to me a few months ago after working with a company for over two years...I didn't get any hours the week after Christmas (when they had all the temps), so I saw the writing on the wall and put in my two weeks...I was on the schedule for a couple of shifts the next week and everybody kept asking me how my vacation was. I asked "what vacation?" and they told me that the managers had told everybody I had asked for the week off to take a vacation....

I think it's a horrible business practice to cut people who have shown loyalty to a company long enough to make decent money. There are plenty of ways to save, but cutting employees and hiring less experienced, cheaper labor is just plain WRONG!

[big daddy russ]

I used to like Circuit City a whole lot. They used to market themselves as an "upscale Best Buy," kinda the Target vs. Wally World approach.

Circuit City used to have better electronics, but Best Buy started cutting into their market when Yamaha started making better stuff and they picked up Denon. Circuit City didn't do anything about it, and that's probably why they're suffering. They need to step it back up for the people who look for the better stuff.

[injuredinmelee]

I ahve yet to find more than 5 people working at the Abilene store with an IQ above 30.

[44INAROW]

Originally posted by Maroon87
I used to work at Circuit City many moons ago. I got to drive that little forklift around the warehouse area.:cool:

Did it go "beep beep beep" when you backed up? :p :p

[Blastoderm55]

Why not just offer them the same job at a lower wage? Flat-out firing will only lead to disgruntled employee-customers as well as poor customer service now that retention has been thrown out the window in exchange for cheaper labor.

[crzyjournalist03]

Originally posted by Blastoderm55
Why not just offer them the same job at a lower wage? Flat-out firing will only lead to disgruntled employee-customers as well as poor customer service now that retention has been thrown out the window in exchange for cheaper labor.

Riiiiight...

I'll let your boss know that he can give you a pay cut and you'll still have all the same responsibilities next time he wants to save money.

[Txbroadcaster]

Originally posted by crzyjournalist03
Riiiiight...

I'll let your boss know that he can give you a pay cut and you'll still have all the same responsibilities next time he wants to save money.

at least then they can keep working until they find something else..now they are forced to find work without at least earning SOMETHING until they find a new job

[Blastoderm55]

Originally posted by Txbroadcaster
at least then they can keep working until they find something else..now they are forced to find work without at least earning SOMETHING until they find a new job

Exactly.

[JasperDog94]

Meanwhile the company has ticked off employees working for them while they're searching for a new job? You guys must not own a business with lots of employees.

[crzyjournalist03]

Originally posted by JasperDog94
Meanwhile the company has ticked off employees working for them while they're searching for a new job? You guys must not own a business with lots of employees.

Bingo...bad idea waiting to happen.

[Blastoderm55]

Originally posted by JasperDog94
Meanwhile the company has ticked off employees working for them while they're searching for a new job? You guys must not own a business with lots of employees.

No, I own a business with myself the only employee. I've taken pay cuts and have even gone periods without taking a paycheck just to ensure that all bills were paid and cleared. A typical employee in corporate America obviously wouldn't do such a thing, but I have a feeling most would appreciate having a chance to retain a source of income, whether they are happy with the pay cut or not.

[Txbroadcaster]

Originally posted by JasperDog94
Meanwhile the company has ticked off employees working for them while they're searching for a new job? You guys must not own a business with lots of employees.

I worked for a store that basically did the exact same thing except they offered the choice..leave now, or accept a pay cut and stay on either until you find something else or things improve...Out of 80 that was asked to do this 75 stayed on and there were no problems.

[Emerson1]

Originally posted by Ranger Mom
I guess it's good you can't get that discount anymore...he probably would have got the axe too!!:)
We have the benefits of a best buy discount now

[BIG BLUE DEFENSIVE END]

I don't see what all of you are complaining about, we have to protect the rights of big businesses at all cost. Down with labor unions and fair treatment of employees. :mad: