Circuit City said yesterday that it had fired 3,400 of its highest-paid sales staff — 8% of its employees — and will replace them with lower-paid workers. Sign On San Diego called this ‘a risky strategy to cut costs that goes beyond the layoffs, buyouts and hiring freezes commonly used by struggling companies.’ The fired workers have a chance to apply for lower-paying positions after a 10-week wait, the company said. Quoting a Circuit City spokesman: ‘This is no reflection on job performance… We deeply regret the negative impact. Retail is extremely competitive, and if we’re going to thrive and operate a successful company… we just have to control costs.’ So: work hard, become the best in your field, and get fired so they can offer you a new job 10 weeks later at a lower salary.
That’s just unreal. There’s gotta be a better way to cut cost! I’ve been there and done that. I essentially lost a job once because I had advanced to the point where I was making some good money, and therefore when it came time to cut cost, they could save a significant amount of money by letting me go.
How about we do it this way: let’s fire the CEO and all **upper** management, and promote from within the company, paying less than they were getting paid. I bet we save a whole lot more money, and the company continues to flourish.
Unless [[Circuit City]] is run like [[Ben & Jerry’s]] where the CEO’s max salary is tied to the minimum salary of its employees, I can almost guarantee that the CEO is over paid (aren’t they all!).