Circuit City........the New WalMart

Over at MSNBC, Circuit City announced that they were going to replace up to 3,400 workers, and replace them with lower paid newbies.

Now I can understand a business letting their employees go due to bad economic times, people are not buying your particular brand of shite anymore, what-have-you. And it's not unheard of in other sectors of the workforce (that aren't unionized), but this is retail, which I'm sure at one point, we've all worked in a chain store, or some retail operation. You are typically paid minimum wage, or commission if you break sales over what it would take to pay your paltry 40 hours at 5.15 (if you even get 40 hours). Does anyone else see this as a bad way to recruit and keep talented (and motivated) sales people?
I agree with this statement:

David Lewis, president of OperationsInc., a human resources consultancy, agrees that you can always find people to take the jobs, but he believes Circuit City’s move ultimately will weaken the organization. “It will give them short-term gains, but for the long term it’s like shooting yourself in both feet with a howitzer,” he notes.

And where will they find this uber-cheap labor? The answer is surprising (ah, not so much):

Alas, the cheaper workforce Circuit City seeks may end up coming from among the very people they are now letting go. While all the terminated workers will be given severance packages based on their years of service, they will all have the opportunity to reapply for their same jobs after a 10–week period — presuming they are willing to accept a lower wage, of course.

Basically, it is a nice "Fuck you very much for working for Circuit City. Come back in ten weeks and we'll re-hire you, and then shit-can you again when you start making to much"

I know what outsourcing means, is this new fad going to be called "in-bred sourcing"?


I didn't read beyond the layoffs/firings

I'm glad you did.

No more circuit city buying for me. We usually go to CostCo anyway - or Best Buy (can't stand to shop there for some reason)

Robin Hayes lied. Nobody died, but thousands of folks lost their jobs.

Vote Democratic! The ass you save may be your own.


Go here for the NC impact.

Good link

Thanks for tying this to the ground in North Carolina. There is no reason for anyone to ever go into a Circuit City again. The company is obviously run by idiots.

I've Linked that Story Elsewhere

Thanks for the local link.

From Charlotte:

"Feldman said Home Depot boosted profits after the home-improvement chain converted much of its full-time staff to part-time workers starting after 2001. But its stock price sagged and so did customer-service ratings, which hit an all-time low in 2005.

Meanwhile, its main competitor, Mooresville-based Lowe's Companies, saw customer-service ratings reach record highs."

I've worked for both of those companies - guess which one I liked the best? heh. I'd still be working for one of them if it weren't for those dang rotating shifts....

Circuit City - you made a big boo-boo.