The Finch Formerly Known As Gold

28 March 2007

Geniuses at work

News Item: Circuit City Stores Inc. unveiled further details of its restructuring plan on Wednesday, including cutting about 3,400 store associate jobs. The cuts, which are occurring today, focused on associates whom Circuit City said "were paid well above the market-based salary range for their role." New associates will be hired for these positions and compensated at the current market range for the job, the company said.

Now that's brilliant: sack all the experienced people and replace them with newbies. The only possible explanation is that Circuit City CEO Philip Schoonover, after just over a year on the job, is bucking for a position in what remains of the Bush administration.

Posted at 5:34 PM to Dyssynergy

Fire all the competent sales staff, hire a bunch of n00bs, waste money on training them, hire more when they wash out/come to their senses, waste more money on training the re-replacements. Next Christmas's sales suffer because no one is smart enough to help the customers, and the CEO gets fired in Spring 2008. In Summer 2008, a consultant will get paid $500K to tell Circuit City's board that it would have been more profitable/less costly to keep the people they fired as a "cost-saving measure".

... and they wonder why the Chinese will be taking over soon.

Posted by: Dan B at 9:22 PM on 29 March 2007