Circuit City Lays Off "Over Paid" Workers

Published on March 29, 2007 By Zoomba In WinCustomize News

It seems that those poor electronics store chains just can't get a break lately. BestBuy misleads consumers with their intranet site, CompUSA is forced to close over half of all of its stores nation-wide, and now Circuit City has to lay off about 3,400 "overpaid" employees. The goal is to replace them with lower-cost workers as part of their cost restructuring plans for the company. These people, representing roughly 8% of the company's overall workforce, will receive 4 weeks severance pay, and be allowed to re-apply for their old jobs at a lower pay rate, after a 10 week hiatus.

This comes after the company already closed 62 of its stores in Canada and seven in the US.

On top of these restructuring efforts, Circuit City plans to outsource it's IT Operations department to IBM, cutting another 130 jobs.

Comments (Page 1)

BONEHEADdb

on Mar 29, 2007

Hasn't Circuit City heard of pay cuts? Why fire People and then give them a chance to get there jobs back at a lower wage? Are they going to use this window to hire wetbacks?

Philly0381

on Mar 29, 2007

With all the reductions in retail outlet stores for computers and software a person might come to the conclusion that Vista might have a hard time finding its way onto home computers. Just my observation and opinion.

I wonder what Microsofts take on this is? HA!

Drop125

on Mar 29, 2007

no mexicans would not work that cheap...try to get one of em to work for you for less than 10 dollars an hour and the will laugh at you..i asked several in front of homedepot before...Circuit city is dropping the wages too about 8 dollars an hour...So good luck getting quality service there..It was difficult before..now it will be really hard...

Philly0381

on Mar 29, 2007

Here's another thought on these closures and reductions, usually they come about due to what is commonly called market adjustment or restructure. Granted the store fronts are not only selling computers but are we seeing a change from people buying computers to building their own or buying online?

MarkSnyder61

on Mar 29, 2007

Another one bites the dust due to BUSH! He needs to go.

Philly0381

on Mar 29, 2007

I wonder if the phrase "lower-cost workers" could be part-time employess that wouldn't be eligible for benefits? Most business in the service and retail sector hire that way to keep costs down.

As far as Circuit City's actions, I believe the NFL does it on a reqular basis so they can stay under a pay cap. Oh, did I hear you say that's different?

Bebi Bulma

on Mar 29, 2007

I wonder if the phrase "lower-cost workers" could be part-time employess that wouldn't be eligible for benefits? Most business in the service and retail sector hire that way to keep costs down.

That's exactly it, and I think the whole thing is total b.s. How are people supposed to be able to live and support themselves and their families with part-time work at low wages and no benefits? But that's ok...as long as the people at the top get to drive around in their Mercedes and live in 5000 square foot mansions...who cares how the people they employee are struggling paycheck to paycheck without being able to provide medical care for their children.

Philly0381

on Mar 29, 2007

Bebi Bulma - Understand your point and there will always be people to fill part time jobs. Those that care about their future and have the desire do something about it, like getting an education or learning a trade, even while they maybe working at one or more part time jobs. I think the stores in question are public not private meaning there are stock holders, wonder what they think?

Mark Snyder - Help me understand how Bush had anything to do with the store closing in Canada? That's not too clear to me.

Nimbin

on Mar 29, 2007

this is not an unusual case, it is happening all over the world as corperate greed and the fight for the almighty dollar gets stronger and stronger. the problem with bringing in low cost workers is also low cost skills and with that productivity suffers and quality control goes out the window. I dont believe this is a 'bush' problem, more so the fat cats at the top of these companies who make the decisions and their advisors who give them horror stories everyday. like i said this is a world wide problem and not likely to go away anytime soon.

Philly0381

on Mar 29, 2007

Nimbin - Like the other replies you make good points. I do take exception to the reference that low cost workers bring low cost skills and that productivity and quaility control goes out the window.

I may be cut from a different stock, as the saying goes, but since I'm pushing 60 yrs old I had the opportunity to work in/at several part time jobs. My desire to do a good job and learn the task that the job entailed were important to me. I also had a father who sat me down when I first started working and explained that I carried the family name and I was not to bring disrespect to it. Don't take that to mean that he didn't want me to stand up for myself.

Maybe the children of the world are being brought up differently these days.

Nimbin

on Mar 29, 2007

ello philly, there are always exceptions to every rule, i should have made my point clearer by saying that this does not mean all low cost workers, i meant no disrespect to you and any others. but history does backup my words in some ways. i understand there are highly skilled people out there who are willing to work for less than they deserve just to have a job and be earning, but there are also a lot of unskilled people out there as well, these are the ones i mean, willing to work for nothing and the get what you pay for mentallity applies here. i apologise to all who are nopt in the same boat

Philly0381

on Mar 29, 2007

Nimbin - Your post was fine. I think what I was trying to point out in all my replies is that in the bigger picture there really is no one person or entity that is totally responsible for the situation at hand. Whether we want to belive it or not.

My personal theroy about life is we are all too willing to take an aspirn for the headach in stead of trying to figure out was is giving us the headach.

There's are alot of sayings you come across in life, one that holds true is "Be careful for what you wish for, you just might get it." I'm a firm beliver in the problems we face today in our society are just because of that.

Surj

on Mar 30, 2007

god their service sucked before, and their employees knew nothing about the products the sold. now theyre going for even lower wage employees? awesome.

starkers

on Mar 30, 2007

it is happening all over the world as corperate greed and the fight for the almighty dollar gets stronger and stronger.

Happening here in Oz thanks to lil Johnny's new Workplace Agreements legislation.....

Companies are now terminating long term employees and replacing them with offshore imports....otherwise they're shutting up shop and relocating offshore to take advantage of cheap labour in Asia. Many Aussie jobs have already fallen by the wayside ......and many more will follow under the current political/corporate climates.

Nimbin

on Mar 30, 2007

Happening here in Oz thanks to lil Johnny's new Workplace Agreements legislation.....

i agree starkers, just today we had to ring a finance company and got some indian guy who could barely speak english, we got so frustrated we eventually asked him to transfer us to somebody who could speak the language properly. this from a company that proudly proclaims itself to be australian made, what a joke

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