Circuit City to Fire 3400, Hire Less Costly Workers

Discussion in 'Wall St. News' started by a529612, Mar 29, 2007.

  1. Chief Executive Officer Philip Schoonover was paid $8.52 million in fiscal 2006, including a salary of $975,000. Best Buy CEO Brad Anderson received $3.85 million, including a $1.17 million salary.

    Circuit City is trying to save money after reporting its first loss in six quarters in December. Its stock, which rose 1.9 percent today, has fallen 21 percent over the past 12 months as profit from selling flat-panel televisions plummeted.
  2. what's wrong with minimizing cost?
  3. Nothing at all.

    We need to cut costs, join me for dinner and we'll discuss this issue.

    I'm going to enjoy a fine bottle of wine, shrimp cocktail and a delicious steak dinner. You can only order a childrens portion hamburger and water. After all, we need to cut costs.:confused:

    Leave the tip then bring my car around.
  4. Funny how the Circuit City CEO made more than twice as much as Best Buy's CEO while delivering half the profits.
  5. Thats interesting, if you're a Best Buy employee and you move over to Circuit they pay you a ton of money (compared to bby that is). Then again, they are a lot more relaxed than the BBY stores. The budgets are half as much, and they get half the customers.

    The BBY CEO gave out a ton of his options though this year to one star employee per store. Pretty cool thing IMO
  6. You would make a great corporate executive.

    Problem with Circuit City is not the absurdly high wages of $10-11 per hour, but the fact that they are not as well run as Best Buy. CC already has low morale and weak salesstaff, not that Best Buy is that much better. But there is a noticable difference in how the two stores are run and if anything, higher wages OR better yet, a % commission incentive is what is needed at Circuit city. Also, better product offering, although CC does have its strengths in that (which ironically are not at their best due to the weak & unmotivated sales staff).

    But instead, Circuit City is destroying morale and replacing their barely adequate current staff with an even worse one. I wonder just how well that will work out on the sales side of the equation.

    It really does not matter, cause the execs will squeeze a bonus out of the saved money. And the earnings will get a short term improvement as the whole situation settles in.
    It's all about short term, who cares about intermediate term. At worst case, the CEO will just get a resignation package.

    This country is heading down the toilet so fast, that there is no need to flush.
  7. I used to go to CC all the time. I rarely think about it now. Not a good shopping experience anymore. Just go on line, or go to Best Buy or whatever. Sounds like they won't be around long, anyway.

    I can't remember any company actually saying "we'll fire everybody and hire cheaper workers..." Sure, they usually are trying to get rid of the older, higher paid people, but actually announcing that? Oh yeah, those CC employees are really going to be helpful now! Not.
  8. Too bad it wasn't a joke.

    The CEO needs to be the first one out the door.
  9. The country should boycott Circuit City.
  10. yonglee


    I do not understand why Circuit City needs to fire people at this point. They need to find a solution that fundamentally help their finance. Make their business more competitive by having a good price and good customer service. What a dumb !!!:eek:
    #10     Mar 29, 2007