How Circuit City Committed Suicide
From Prospect.org's Beat the Press
, summarizing this piece
from the Washington Post
The basic story is that last March, the wise men who run Circuit City came up with the brilliant idea of laying off their more senior salespeople, who get $14-$15 an hour, and replacing them with new hires who get around $9 an hour. It turns out that this move was not very good for business. One of the reasons that people go to a store like Circuit City, rather than buying things on the Internet, is that they want to be able to talk to a knowledgeable salesperson. Since Circuit City had laid off their knowledgeable salespeople, there was little reason to shop there. ... The Post reports that Circuit City's executive vice-presidents will get retention awards of $1 million each.
The good news is that this will now kill the company, preventing it from happening again; the bad news is that these executives will probably get new jobs at a new company instead of being rousted from their beds by out-of-work salespeople and perforated by pitchfork.
Santa Claus Comes for Failed Business Executives
[Prospect.org via Daring Fireball
This entry was posted in bullshit
and tagged capitalism
. Bookmark the permalink