Circuit City’s ‘Wage Management Initiative’

Nice:

The electronics retailer, facing larger competitors and falling sales, said Wednesday that it would lay off about 3,400 store workers — immediately — and replace them with lower-paid new hires as soon as possible. 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. "We haven’t done something called (a) wage management initiative before," said company spokesman Jim Babb. "All companies at one time or another need to go through and make sure their cost structure works with market conditions."

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Andy is an award-winning blogger and author of the book Blogwild! A Guide for Small Business Blogging. His work has been featured in The Wall Street Journal, USA Today, Entrepreneur, Wired, Business Week, Forbes, and other national and international media. He was worked at several San Francisco startups including Get Satisfaction, SAY Media, InMobi, Keas, and Mindjet. Currently, Andy is Director of Marketing at Lucidworks. Tw · Fb · G+ · Li

2 thoughts on “Circuit City’s ‘Wage Management Initiative’

  1. Merlyn Sanchez

    Can they replace the top level executives with lower wage employees? Even Mr. Babb’s job as company spokesman can probably go to an enterprising college student at an entry level salary. I certainly won’t go anywhere near Circuit City after this wonderful “initiative”.

    Reply

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