Circuit City -- I'm boycotting!!!

[Carol C Senior Member Find all posts View Profile Close Carol C]

There's been a Circuit City boycott for some time. Google and ye shall find.

[shaggy Moderator Find all posts View Profile Close shaggy]

My computer got a virus so haven't been on lately. I can't decide what to do with my stock, I have a bunch. May watch and then call if I see it go down. I know they are going to report a bad 4th quarter. shaggy

[gravityrules Member Find all posts View Profile Close gravityrules]

It's not like they are cutting 'high salary' employees; more like taking out the $10-$12/hour employees and replacing them with $8/hour employees. They'll be bumping into minimum wage if any of the legislation on that subject is passed. These are barely more than poverty level jobs, if you are dependent upon them for a full time income. Of course many of the employees are part time. Ultimately many of the employees will not be able to afford the products/services they are selling. Anyone want to look up the salaries of the CEO and the top executives making these decisions? Don't forget the stock options!

Have you noticed the trend to eliminate the lowest paid jobs? Having worked as a grocery store 'sacker' in my high school days I find it amusing that low margin grocery stores can afford $$$ capital expeditures on automated check-out systems that ultimately replace the sacker (making you do it yourself) and reduces the number of cashiers. Maybe that explains why nobody is available at Walmart to gather the shopping carts from the parking lot!

I also find it amazing that CC thinks it can cut 3400 experienced employees, quickly re-hire brand new replacements, and the customers not be able to tell the difference. I'm sure employee morale among those remaining is going to suffer, which means customer service is likely to suffer as well.

They also whacked 130 professional IT jobs (in that field lately that probably means out-sourced to India???)

Here's the text of the story:

Circuit City to Cut 8% of Staff and May Sell Canadian Unit

By THE ASSOCIATED PRESS
Published: March 29, 2007

RICHMOND, Va., March 28 (AP) — Circuit City Stores Inc. said on Wednesday that it would cut costs by laying off about 3,400 retail workers, or 8.5 percent of its in-store staff, and hiring lower-paid employees to replace them. It is also trimming about 130 corporate information-technology jobs.

Shares of Circuit City rose 35 cents, to $19.23.

Circuit City, the nation’s No. 2 consumer electronics retailer behind the Best Buy Company, said the store workers being laid off effective Wednesday were earning “well above the market-based salary range for their role.” They will be replaced as soon as possible with employees who will be paid at the current market range, the company said.

“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,” the chief executive, Philip J. Schoonover, said in a statement.

Circuit City employs about 40,000 part-time and full-time store employees, a spokeswoman, Jackie Foreman, said. Those being laid off will get severance packages and may apply for any open positions after 10 weeks.

The company, based in Richmond, Va., plans to replace all 3,400 workers “as quickly as store directors are able,” Ms. Foreman said.

[shaggy Moderator Find all posts View Profile Close shaggy]

Sold it all!!!

I sold every last bit of my stock. I hope I didn't do something foolish because I know people like cost cutting and I bet it will go up. They are also going to report a bad 4th quarter so I'm hedging it will drop. Even if it doesn't I hate that place, so feel I can put my money somewhere else. I just hate I had to make that decision. shaggy

[opkansas Senior Member Find all posts View Profile Close opkansas]

The retailer said the majority of the 3,400 employees let go "were paid well
above the market-based salary range for their role" and would be replaced
by new workers "compensated at the current market range for the job".


Unless they are in real financial in trouble, this is disgusting.

Of course they make more if they have been there for years and years.

This is akin to firing teachers who have worked for 20+ years and gone up in salary, to replace them with new hires becasue you can get two for the price of the old one.
YIKES!

Sorry that this affected your friends Shaggy.

INTERESTING! I FOUND OUT A LONG TIME AGO THAT - ON THE AVERAGE - THE LARGER THE COMPANY, THE MORE INEPT THE MANAGEMENT.

20 YEARS AGO EASTERN AIRLINES PAID THEIR CEO $702,000,000 AND RECORDED A LOSS OF $700,000,000. I APPLIED FOR THE JOB AND TOLD THEM I WOULD ACCEPT $2,000,000 AND THE NET PROFIT WOULD HAVE BEEN $700,000,000. THEY NEVER ANSWERED ME! THEY WENT BANKRUPT!

TWO YEARS AGO CENDANT PAID THEIR CEO $137,000,000 AND THE WALL STREET JOURNAL WAS ALL OVER THEM ABOUT THE LEADER IN CEO EXCESS WAGES IN THE US. CENDANT IS NOW 4 SEPARATE COMPANIES WITH NEW NAMES.

THIS LATEST MOVE BY CIRCUIT CITY MANAGEMENT IS ANOTHER EXAMPLE OF INEPT MANAGEMENT. I PERSONALLY WILL NEVER BUY THERE AGAIN AS THEY WILL GO DOWN!

AS JIM CRAMER WOULD SAY - SELL! SELL! SELL!