Circuit City, Cutting Off Nose?

You know the saying, cutting off your nose to spite your face? You have to wonder if Circuit City might have done the same. We reported earlier this week that the mega-retailer is going to shut down 150 stores and is laying off thousands of employees.

We blamed the economy. But we have to wonder if something else was behind their downward spiral.

MSNBC reported last April that Circuit City thought it would be just brilliant to fire their highest-paid (and most likely, most experienced) sales clerks, about 3,400 of them, and replace them with lower-paid folks. I don't know if you've recently tried to get advice at their stores, but trust us — it wasn't pretty.  Comical, but not pretty. 

The same reporter from MSNBC is now wondering if that move played a part in their current woes. Can't believe it helped. Not only did this move create an obviously inexperienced sales force, it destroyed employee morale.  "Work hard, excel at your job, then we'll fire you!"  Way to go, CC. —Leslie Shapiro

The Career Diva