Friday, June 1, 2007

More Firings at Circuit City

Many of you sent me articles today about Circuit City's latest wave of firings, this time involving mostly jobs in middle management.
Circuit City said 654 of the [eliminated] positions will come from management as it adopts a policy of assigning managers based on sales volume, spokesman Bill Cimino said. Until now, each store had five managers regardless of revenue, he said. Now, stores will have from three to five managers each, based on revenue. The cuts will come from a combination of attrition, transfers and dismissals, he said.
Unlike the previous firings, it does not appear Circuit City will be replacing these employees with lower-paid hires - they're just victims of old-fashioned "downsizing." It also is unclear whether these firings were based strictly on workers' salary level, like the last ones.

Still, it suggests that the company's first round of firings was not enough to raise profits - surprise, surprise! Maybe if they fire everyone but CEO Philip Schoonover he can sell all the TV's himself.

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