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  1. #1
    Senior Member CountFloyd's Avatar
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    Circuit City plans layoffs, hiring of less-expensive workers

    Circuit City plans layoffs, hiring of less-expensive store workers

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

    Circuit City, the nation's No. 2 consumer electronics retailer behind Best Buy (BBY), will lay off store workers it said were earning "well above the market-based salary range for their role" and replace them 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," said Philip J. Schoonover, Circuit City's chief executive.

    The company also plans to outsource its information-technology infrastructure operations to IBM, a move that is expected to cut IT expenses by more than 16%. 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, distribution center that was used primarily for store fixtures and signs.

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

    Circuit City, based in Richmond, 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.

    http://www.usatoday.com/money/industrie ... offs_N.htm
    It's like hell vomited and the Bush administration appeared.

  2. #2
    Senior Member BetsyRoss's Avatar
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    If they're thinking about selling, we are talking about a sinking ship and the employees should be sending out resumes before the axe falls. One certainly wonders how they are going to cut their labor costs. There are a number of ways, none of them good. Even the survivors will suffer. Once your company transfers you to another company via outsourcing (even with local US outsourcing) that is usually neon handwriting on the wall for your career.
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  3. #3
    Senior Member CountFloyd's Avatar
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    What surprises me about these announcements is that they're so blatant about what they're going to do.

    "We're driving down wages" didn't used to be something companies bragged about in public, but now that the gates are wide open I guess that no longer feel that this is a negative to them.

    You do have to wonder where this is all going to end, though. We're certainly heading full speed towards a two-tiered society of the super-rich and everybody else.
    It's like hell vomited and the Bush administration appeared.

  4. #4
    Senior Member BetsyRoss's Avatar
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    What Greenspan blurted out recently has been the thinking and actions of companies for the last 7 years at least.
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  5. #5
    Senior Member sippy's Avatar
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    Circuit City Stores (CC) said Wednesday that it plans to cut costs by laying off 3,400 store associates and hiring lower-paid workers to replace them and by trimming about 130 corporate jobs.
    In other words, our CEO's and stake holders want bigger profits and raises because housing prices in Tuscany and the Hamptons have increased dramatically and they cannot afford these new homes without huge increases. So we have to have criminal alien workers because they will work for less than Americans will.
    "Doing the same thing over and over again and expecting the same results is the definition of insanity. " Albert Einstein.

  6. #6
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    I couldn't believe this when I saw it on CNN. So basically, if the Flake/Guiterrez bill passes, all the Big Business owners can hire cheap labor if they "can't find an American willing to do the work for peanuts".
    And that IS EXACTLY what they plan on doing! We have to KILL THAT BILL!

  7. #7
    Senior Member BetsyRoss's Avatar
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    Yes, it is the idea behind amnesty and both skilled and unskilled guestworker programs. Nowhere was the implementation so obvious as in the H-1b guestworker visa case. Supposedly, companies had to try and find an American worker first, could not displace an American worker and replace them, and if they brought in a foreign worker they had to pay them the same. Turns out, none of that was true in practice, and in many well-documented cases American workers were forced to train their foreign replacements (or else no severance and sometimes they'd be listed as 'fired for cause'). That wasn't supposed to happen, but it did all in many places.

    And it will happen again, only more widespread, if this isn't stopped.
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  8. #8
    Senior Member moosetracks's Avatar
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    I COULDN'T believe it either, saying they would hire cheap labor! Who will these people be? Surely not ones you can go into the store and find someone that knows anything about anything!

    I guess I'll not shop there either...boy, the list of stores to shop at, are getting small.
    Do not vote for Party this year, vote for America and American workers!

  9. #9
    Senior Member jp_48504's Avatar
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    "Driving Down Wages" Will that be Cirut City's New Slogan.
    I stay current on Americans for Legal Immigration PAC's fight to Secure Our Border and Send Illegals Home via E-mail Alerts (CLICK HERE TO SIGN UP)

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