"Circuit City Cuts 3,400 'Overpaid' Workers"

[TahitiNut]

Circuit City Cuts 3,400 'Overpaid' Workers

By Ylan Q. Mui
Washington Post Staff Writer
Thursday, March 29, 2007; Page D01

Circuit City fired 3,400 employees in stores across the country yesterday, saying they were making too much money and would be replaced by new hires willing to work for less.

The company said the dismissals had nothing to do with performance but were part of a larger effort to improve the bottom line. The firings represent about 9 percent of the company's in-store workforce of 40,000.

<snip>

Philip J. Schoonover, Chairman, President & CEO of Circuit City, received $6,954,948 in compensation for fiscal year ending 2007.

http://files.shareholder.com/downloads/CC/166093925x0x97911/60fd2440-fda9-4d6c-ba99-60bfdf9ba18e/ar2007.pdf

Let's all leap to the defense of Circuit City. :eyes:

[peacebird]

1. Fire anyone with experience and knowledge... Yep - that'll improve customer satisfaction at CC

:eyes:

[Uben]

2. Ever been to Circuit City?

The one's they are firing are probably the ones who actually know something about the product, not the 90% who just walk around asking to help, you only to find you know more than they do!

[TahitiNut]

5. They perform the functions of stocking clerks and data entry.

:shrug: When it comes to any knowledge of the product, it's what they read off the screen.

[AX10]

3. Boycott anyone?

[redqueen]

4. It's not defense of circuit city.

It's shock and dismay at that guy's idea of what's important.

But hey... things are going great... I guess that's the biggest item on anyone's radar.

Our "top tier" *ptui* candidates are apparently complicit in the plan to steal iraq's oil... so can I assume anyone who doesn't shout about that fucking outrage from the rooftops is "leaping to the murderers' defense"?

[TahitiNut]

8. "Nobody makes a greater mistake than he who does nothing because he could only do a little."

Maybe there's a greater mistake - attacking people who only 'do a little' inconsistent with OUR sense of priorities.

:shrug:

[redqueen]

10. A dozen threads about this BULLSHIT is fucking EMBARRASSING!

While these same people IGNORE that the "winningest" candidates are on-board with wholesale murder / theft of a "sovereign" country's resources?

:puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke:

[TahitiNut]

12. The corruption in our "body politic" is wide and deep - and it INCLUDES petty tyranny.

We sheeple are, every day in many ways, being trained to be compliant with AUTHORITY. It's insidious and it'll get worse. It'll get a LOT worse before it gets better, especially because of 'friendly fire' in the class war.

[redqueen]

16. Oh are we now?

You mean like how people know the top-tier candidates won't do shit about serious issues? But they vote for them anyway? That kind of compliance?

We'll just keep nibbling around the edges... and those that die waiting for someone to take a stand will just... well they'll just have to die, won't they?

But hey! Maybe those oh-so-winningest "top-tier" candidates will stop all this bag-searching nonsense!

[TahitiNut]

19. Kucinich is my favorite, as well.

While I steadfastly reserve the right to defer my decision on voting until the minute I enter the voting booth, I entertain the possibility of voting FOR Kucinich even in the General Election, even if it must be a write-in.

This nation will get the lessons it deserves. I believe those lessons will only get harsher and harsher ... until we "get it."

[redqueen]

20. It certainly does.

Bag searches and all.

Meanwhile, back in Iraq...

[bobbolink]

47. "Meanwhile, back in Iraq..."

Is Iraq all that matters?

[ProdigalJunkMail]

6. must have been bag checkers... n/t

[Dukkha]

7. I love it when Instant Karma gets you!

http://www.washingtonpost.com/wp-dyn/content/article/2007/05/01/AR2007050101623_pf.html

Circuit City's Job Cuts Backfiring, Analysts Say

Circuit City fired 3,400 of its highest-paid store employees in March, saying it needed to hire cheaper workers to shore up its bottom line. Now, the Richmond electronics retailer says it expects to post a first-quarter loss next month, and analysts are blaming the job cuts.

The company, which on Monday also revised its outlook for the first half of its fiscal year ending Feb. 29, 2008, cited poor sales of large flat-panel and projection televisions. Analysts said Circuit City had cast off some of its most experienced and successful people and was losing business to competitors who have better-trained employees.

[Johonny]

25. So in sales

Experience does matter. What a concept. Who would of thought people are unconfortable paying 2-5 K for a TV from someone that doesn't know a thing about the TVs they're selling.

[MrModerate]

9. What assholes! Like $11.59/hour is "overpaid" . . .

I think:

• Circuit City just shat all over its brand, because a lot of its customers are in the employment category of the people they just axed.

• The people they hire to fill the jobs will be even more useless than most store clerks (who as a rule are actually UNDERpaid and underappreciated) -- and there will be continuous talent/skill leakage on a major scale as anyone with half a brain who didn't get axed this time looks for a new employer.

• I won't ever step into their stores again.

[AX10]

11. I agree.

[TahitiNut]

43. ... and $6,954,948 isn't. Fab, isn't it?

:eyes:

Gotta wonder at the whiz-dumb of folks who defend their policies - which amount to externalizing their expenses by burdening the customer.

[Xithras]

13. Again?

They just did this last March. Same percentage of employees too. It's a scary precedent if you think about it...cull the top 10% of your workforce every six months, and you gurantee that no employee can stick around for over 5 years. That prevents ANYONE from getting too much seniority pay. Since CC has a health care plan and there is a waiting period to qualify, they also just reduced their health care expenses by about 10%

Scary indeed.

[TahitiNut]

17. I was careful to include "Thursday, March 29, 2007" in the OM.

It just turns out to be a timely reminder.

[Xithras]

30. Doh!

I missed that. I knew they'd done it last March (and incidentally, their QoS went through the floor afterward) and assumed they'd done so again after reading this.

[flyingfysh]

18. not again

The quoted news story was dated March 29. What was new was how much the CEO is getting paid.

[nuxvomica]

14. I wonder if the guy who had the customer arrested lost his job

That would be ironic. I can see his boss saying, "This is not about performance. You're actually doing a fine job treating the customers like criminals but we just aren't making enough money and we can't figure out why."

[DaveJ]

23. LOL, Nice Description

I'm sure the company is run by thugs. Typical Republican obtuseness. Too bad, I had high hopes when the company came along, it was supposed to be friendly professional environment. The should just give up and close shop if they can't contribute positively to the community.

[tabasco]

52. Hahaha! Good one! n/t

[Beaverhausen]

15. I wonder why that blogger went there in the first place

If he wasn't already boycotting them he's even more of a jackass.

[redqueen]

21. Jackass, Idiot, the Next Rosa Parks

Who gives a shit.

[Tesha]

22. You apparently do -- you've been in every thread multiple times.

> Who gives a shit.

You apparently do -- you've been in every thread multiple times.
Of course, you've missed the point every time so maybe you're
still trying to "get it".

Tesha

[redqueen]

24. At first I thought it was funny.

All these people getting so worked up over fucking receipts & idiotic douchebaggery.

Did you see this thread?
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x1748873

[Tesha]

29. Yes, I saw that thread. (NT)

[mondo joe]

26. Circuit City sucks for a lot of reasons. NT

[madmom]

27. Now this is something to boycott over, IMO.

[Oeditpus Rex]

28. Well, at least they're honest

"We're firing these people because we're money-worshiping grubworms."

[Warpy]

31. They are desperate to goose the stock price up

The dirty truth is that all corporations use actuarial tables to tell them when training new hires is more economical than retaining seasoned employees and they all do this shit.

I haven't set foot in a Circuit City since they announced the first round of layoffs of this description 6 months ago.

The announcement is about the CEO wanting his stock options to pay off.

[ComerPerro]

32. maybe they're feeling the crunch of lawsuit threats from spoiled children like your hero

[TahitiNut]

33. "spoiled children like your hero"?

Try to sober up before posting and maybe they won't sound like stupid, insulting ravings.

[ComerPerro]

37. that is what this is about, right? that poor abused blogger who calls the cops then acts like a dick

[high density]

34. $50k relocation payment; $23k for car "allowance"; $92k worth of use of the corporate aircraft

It's tough to be rich!

[TahitiNut]

35. ... and over $16 million in stock options to mature in future years.

Must be tough, huh?

[LaPera]

36. And still some dems don't understand why unions, that the corporations despise so intensely

are necessary for all workers to help get fair wages and health benefits and job safety for all workers....the republicans and corporations do all in their power to bust unions up, keep peoples heads filled with corporate propaganda about unions having workers hating unions, voting against their own best interest....while now it's OK to fire workers for even discussing having a union.....

How many moderates getting fired who believed this anti union bullshit that are getting replaced voted republican, believing the republicans that management will take care of them and to hate unions....and these same workers are losing their jobs and same still hate the workers only voice unions -- workers standing united for fair pay, job safety, health benefits and job security for all workers?

[Cleita]

38. There used to be laws against firing people for that reason.

I guess not anymore.

[Blue_Tires]

39. sad

the 'overpaid' workers excuse has also been used in Detroit auto industry for years now

[TahitiNut]

42. And they don't regard $6,954,948 as "overpaid"? (Talk about batshit insane.)

Just like Henry Deuce. :shrug:

[cabbage08]

40. The item is from March 29th, is there any update on the story?

:shrug:

[Dukkha]

41. see post #7 it backfired on them

and they lost sales for having no quality customer sservice.

[progressoid]

44. Ya know how I'm going to protest this?

I'm going to go to Circuit City, buy some cheap shit made in Asia, and then be as big of an asshole as possible when leaving the store. That'll show 'em.

[TahitiNut]

45. ... and that's different because ...???

:eyes:

[tomreedtoon]

46. I dealt with those people. They WERE overpaid.

Now, if they had anyone working there who was friendly and knowledgable and not just a shill, I'd be more upset. I've had more friendly service from self-checkout machines.

And once again, I don't know why anyone was surprised that people are being hassled as they leave the store and have their bags searched. They treat EVERYBODY who enters that store like they were going to smuggle one of those awful plasma TV's out in their back pockets.

Screw 'em. When given the chance, I'll buy off eBay from impoverished people like DU'ers rather than deal with Cursed City or Beastly Buy.

[Deja Q]

50. How do you know?

Did the guy say how long he was working there and told you other bits of proof? (which is a possibility, but I usually don't ask store clerks how long they've been employed there.)

[tomreedtoon]

56. Let's put it this way...

...when the guy's name tag reads "Doris" and is upside down, he obviously would have problems in any kind of job.

Mind you, I like electronics, but I'm not a materialist. I want stuff that works, not stuff that's flashy. And it requires study to find out what will suit your needs and what is overkill. Places like Cursed City and Beastly Buy and Fried DEPEND on overkill, on taking as much of your money as they can.

To tell the truth, I think they're firing people because nobody's shopping there any more. People are funneling more of their discretionary income into silly things like gas, bills and food, which for some reason are costing more. Firing people is the only way they can save money; what are they going to do, shut down stores and send their stockholders into a panic?

But it's obvious that Cursed City doesn't want qualified people to sell high-tech items. Which means they don't respect you, the customer. Which gives you even less reason to shop there, especially when all the store personnel are expected to treat you like a potential thief.

I'm sorry for the people who are losing their jobs, but pretty soon ALL of us will be losing our jobs, so my sympathy is kind of muted.

[ulysses]

48. damn, that's pretty bald of them.

Fuck them, but at least they're honest.

[Deja Q]

49. Circuit City may as well hire apes from the zoo

What the hell happened to hiring specialized people with training and know how to do things?

Circuit City acting like that, people will just stop going there. I know Best Buy has enough of a bad reputation, but Circuit City not only did a one-up regarding stupidity, they outdid BB by a factor of 100.

K&R

[KoKo]

51. Bailed out Country Wide Mortgage Co. lays off up to 12,000 Workers...Breaking CNBC!

Countrywide plans to lay off up to 12000 workers
Countrywide CEO calls housing downturn most severe
Fri Sep 7, 2007 6:02PM EDT


NEW YORK, Sept 7 (Reuters) - The current downturn in the U.S. housing and mortgage markets is "certainly the most severe in the contemporary history of our industry," said Countrywide Financial Corp (CFC.N: Quote, Profile, Research) Chief Executive Angelo Mozilo in a letter to employees made public on Friday.

Mozilo, explaining the largest U.S. mortgage lender's plan to lay off up to 12,000 employees, also said market turmoil would provide an opportunity for the company to gain market share and boost margins.

(Reporting by Christian Plumb and Dan Wilchins)

((Reuters Messaging: [e-mail]; [phone])) Keywords: COUNTRYWIDE MOZILO/

(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN07232334


http://www.reuters.com/article/bankingfinancial-SP/idUSN0723233420070907

[KoKo]

53. Weeks ago when Circuit City announced they were laying off those not accepting pay cuts

was when I decided never to go there for anything again. :-(

BTW: Best Buy fixed for free our Sirius Sattelite Radio. Guy in the back gave us free parts for the hook up in our car and free tape thing..that fits in our tape players so we can listen on the road.

FREE! I was shocked...from Best Buy! (Their Customer Service used to suck)..and I know many DU'ers don't like them.. :shrug: They didn't pay me to post this.

[TahitiNut]

54. $48,133,155 'basic' compensation for CEO Angelo Mozilo, and an additional ....

... $72,214,959 in incentive stock options. How many people could support their families on THAT kind of payola?

Let's see... $120 million divided by 12,000 workers ... that's 10 grand in just one executive and doesn;t even count the $26 million in compensation for the President and COO, David Sambol.

It seems to me they're eliminating the wrong jobs.

[KoKo]

55. The only think we can hope for is that these CEO's took their millions and invested in Hedge Funds

and they will go the way of the Gilded Age Folks and lose most of it as the market continues to implode and the Hedge Funds and other High Roller Investments crash in the dust

A lesson these "hot shots" need to learn. Although the worry is they will be bailed out while the minor hedgie investors and the taxpayers get hit... Like Ken Lay is living high in some exotic place and Jeff Skilling's lawyers have now re-opened his case saying that Jeff took the hit for Ken Lay and deserves to be out of prison. :-(