The sign that the end is near

Circuit City announced recently in a press release one change “to improve [it’s] financial performance”:

The company has completed a wage management initiative that will result in the separation of approximately 3,400 store Associates. The separations, which are occurring today [April 28th, 2007], focused on Associates who were paid well above the market-based salary range for their role. New Associates will be hired for these positions and compensated at the current market range for the job.

Ouch! What a slap in the face.

The only reasons I could think of that an employee would be paid “well above the market-based salary range” would be:

  1. Their expertise in the industry
  2. Their longevity in the industry
  3. A combination of 1 and 2

In other words, get rid of the best employees and make a company that is destined for failure. It may be too late, but what if Circuit City would have taken the opposite approach to differentiate itself? Instead of firing the best employees, get rid of the employees that did not provide the optimal customer experience and replace them with employees who would. I’ll tell you why…Circuit City must think of itself as a commodity with nothing to differentiate itself. It’s vanilla.

I think the end is near my friends!


2 Responses

  1. […] 2007 · No Comments So Circuit City fired 3,400 employees recently. It’s being talked about a great deal around today. Gotta love this one post where we’re reminded how […]

  2. Thank You

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