Thursday, May 03, 2007

Ha-Ha! Circuit City's Screwed

Time for a new shadenfruede-a-licious feature here in the Land of Fury—I'll call it a "Nelson."

The results from Circuit City's clueless corporate scumbag plan to bolster profits by screwing their best employees are in, and it turns out firing all your best salespeople wasn't such a good idea...
Circuit City's Job Cuts Backfiring, Analysts Say
[WaPo] 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.

[...] In particular, the televisions showing disappointing results are "intensive sales" requiring more informed employees, Allen said. "It's a big-ticket purchase for somebody. And if they feel like they're not getting the right advice or are being misled by someone who doesn't know, it would be definitely frustrating. They will take their business elsewhere."


Smitty said...

I love that. It made me feel all warm and fuzzy to read it. Some corporate giant needs to make more money ('cause your first 1,000,000,000,000,000 isn't enough) so they can the good people.

The MI legislature just did that. The Republicans lost majorty in the House (as you know) and so they laid-off a bunch of the more expensive long-time staffers who know how govenrment works and how to get back out of the minority and kept the cheaper inexperienced ones.

Good move, if you ask me, though...

S.W. Anderson said...

There ought to be a special hole in hell for MBA's who think it's smart and effective to job-cut their way to fabulous profits — along with the idiot business school profs who taught them that.

Otto Man said...

Mighty fine Nelsoning there, boys.