circuit city

[daveT]

source

After reading the WalMart thread, I wonder how Circuit City is not recieving huge back-lash from this move.

I will never ever shop there again.

Circuit City Stores' (CC) decision to lay off 3,400 employees in order to hire lower-paid replacements is raising questions about the impact of severe cost-cutting on employee morale.

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.

I know that they don't "reveal" the pay, but I know that they are talking about the employees that earn more than $10 per hour.

At one time, Cicuit City paid their employees on a Commision. They stopped that, effectively cutting pay, and now this.

Those hourly workers who are laid off will get severance packages and can apply for open positions after 10 weeks

What this doesn't specify is that the workers are allowed to reapply to their old job if they are willing to work at starting wage.

Even WalMart doesn't sink this low. Just hoping that every one at this forum stops supporting these kinds of companies.

[MrWookie]

I don't see why this is dirty pool, or why I should boycott CC for this. To me, this doesn't look like greedy management trying to subsidize a bigger vacation home. This looks like a struggling business trying to stay afloat. If this is what it takes for them to stay in business, then this is what they need to do? Would you rather they go belly up and THEN fire everyone as a consequence? Workers rights are great and all, but if the market can't support them at their current wages, then their employers shouldn't be forced into bankruptcy by continuing to pay them at their current wages as long as possible. In that scenario, no one wins.

Now, it's perfectly reasonable for you to ask for people not to apply for jobs there. I wouldn't want to apply for a job at a company this unstable. However, if this business can offer me the product I want at the price I want, I'm fine w/ shopping there. I don't think this constitutes any moral barrier to giving them my business.

[RoundGuy]

[ QUOTE ]
firing store associates "who were paid well above the market-based salary range for their role."

[/ QUOTE ]
They are paid more than other employees at other companies who fufill the same role. I see no problem with this.

Unless you are bemoaning the fact that they are not being offered the opportunity to keep their current job at a lower pay rate (which would seem most prudent to me), I must disagree with you here.

It also sounds like they are getting a 10-week severence package. For an hourly employee, that's quite generous.

Edit: I see that they can reapply for their old job. I see no problem with this at all. Prudent business decision.

[tuq]

Yeah, no problem here either. I remember the commission days, there was a Circuit City right by a Worst Buy near where I lived at the time. The help at CC was far superior but I think their prices were higher too. They weren't nearly as busy as the Worst Buy.

People vote with their wallet, they have to do something like this to stay competitive. It sucks, but those workers aren't bound to work there, and can better their situation by advancing their career elsewhere, getting a degree, etc.

[KilgoreTrout]

This is how just about every company determines who to layoff. It's usually stated in more PC terms, "right sizing," "RIF," "redundancy," etc. My firm is laying off 15% of our headcount. My division was given a dollar figure to meet. Now we're preparing our lists to meet that number. Whacking a couple of big salaries or several smaller ones has to be weighed against workload, experience, etc. It is not fun, and for all I know I'm on someone else's hit list.

This is how things work.

[ChipWrecked]

It has been common knowledge for a couple of years that CC has been fighting bankruptcy at the hands of Best Buy. So what's worse, taking a pay cut or losing your job entirely?

I worked for a privately-owned retail chain for almost ten years in my 20's. We competed with both those outfits. Our pay was cut one year as well. Eventually the company sold out to a larger competitor *cough* Ritz Camera *cough* It was a good enough job for when I was young and didn't need much or care too much about what I was doing. I was a store manager so did OK, but if you work in retail and don't own the store your life will pretty much suck. I retrained myself and work in IT now, I have a skill set that is in demand and transportable pretty much anywhere.

Really. If you're working in a retail chain for enough years that you're far above average pay scale, and aren't making provisions to build your job skill set or otherwise improve your chances of survival, you are laying your own head on the chopping block.