Circuit City: Slashing Wages
Circuit City is sinking to a new low.
Last week the nation’s second largest electronics retailer announced that it would fire 3500 of its sales and IT professionals and replace them with lower paid employees. Laid off workers can get their jobs back if they are willing to take the lower wages.
From AP:
The laid-off workers, about 8 percent of the company’s total work force, would get a severance package and a chance to reapply for their former jobs, at lower pay, after a 10-week delay, the company said.
This is cold blooded. It sets a dangerous precident that may well backfire. I certainly won’t be shopping at a Circuit City any time soon.
It is not uncommon for new workers to make less than more experienced employees, but firing good workers because they make too much?
What incentive do job seekers have to take a position at Circuit City? They may well find themselves on the clearance shelves someday.
