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View Full Version : Circuit City to hire cheap labor



gabosaurus
03-28-2007, 11:52 AM
It's the newest trend in American business: Fire your skilled craftsmen and replace them with minimum-wage drones who don't know anything.
Translation: We screwed up and can't run a business. Therefore, you lose your job and we get bonuses for it.
Also: Why should we pay big bucks for American labor when we can either outsource or hire illegal aliens. It's all about our profit.

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RICHMOND, Va. (AP) — Circuit City Stores Inc. said today it plans to cut costs by laying off about 3,400 store workers and hiring lower-paid employees to replace them, and by trimming about 130 corporate jobs.

Its shares rose 3 percent in morning trading.

Circuit City, the nation's No. 2 consumer electronics retailer behind Best Buy Co. Inc., the store workers being laid off were earning "well above the market-based salary range for their role." They will be replaced with employees who will be paid at the current market range, the company said in a news release.

"We are taking a number of aggressive actions to improve our cost and expense structure, which will better position us for improved and sustainable returns in today's marketplace," Philip J. Schoonover, Circuit City's chief executive, said in a statement.

The Richmond-based company also plans to outsource its information-technology infrastructure operations to International Business Machines Corp., a move that is expected to cut IT expenses by more than 16 percent. About 50 of Circuit City's IT workers will move to jobs with IBM and remain on the Circuit City contract. The other 80 corporate positions will be cut.

5stringJeff
03-28-2007, 12:28 PM
It's the newest trend in American business: Fire your skilled craftsmen and replace them with minimum-wage drones who don't know anything.
Translation: We screwed up and can't run a business. Therefore, you lose your job and we get bonuses for it.
Also: Why should we pay big bucks for American labor when we can either outsource or hire illegal aliens. It's all about our profit.

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Circuit City, the nation's No. 2 consumer electronics retailer behind Best Buy Co. Inc., the store workers being laid off were earning "well above the market-based salary range for their role." They will be replaced with employees who will be paid at the current market range, the company said in a news release.

So they're getting cheaper labor for the same job (which requires little, if any skill? That's a smart business decision.

Mr. P
03-28-2007, 12:37 PM
It's the newest trend in American business: Fire your skilled craftsmen ....

Skilled craftsmen in a Circuit City Store? :laugh2: :laugh2: :laugh2:

Little-Acorn
03-28-2007, 12:47 PM
If Circuit City doesn't change over to cheap labor, they'll start losing business to companies that do. Unless those companies have so many problems with the cheap labor that their customers leave in a huff... which it sounds like the customers AREN'T doing. So apparently the cheap labor CAN do the job.

Are they illegals? Maybe. Do you have any evidence they are?

Unfortunately, my first sentence above applies even if the competition is employing illegals. CC will lose business if they pay $10/hr while competing with companies paying illegals $.50/hr. CC will have to make prices higher than they would have been, to pay for the difference in wages. This is a case where obeying the law (employing illegals is forbidden) puts the company at a disadvantage to those who break the law. BECAUSE THE FED GOVT HAS FAILED IN ITS DUTY TO KEEP ILLEGALS OUT.

If the Fed did its job, the competition wouldn't be ABLE to hire illegals, because there wouldn't be any around to hire. Nobody would be ABLE to break the hiring law, cuz there'd be no illegals to break it with.