March 28th, 2007
What do you do when your venerable nationwide chain of electronics stores goes from high times to dire straits? How about blaming the sales staff for being too experienced and therefore costing too much to employ? Circuit City tried that strategy, sacking thousands of veteran employees and replacing them with people who they could pay less–and then trumpeting the move in a press release. One in which it charmingly called the firings a “separation.”
Oddly enough, the move didn’t improve the experience of shopping at Circuit City. Nor did it prevent the company from closing more than a hundred stores in November of 2008, declaring bankruptcy a few days later, and then shuttering its remaining stores early this year.