Going the Circuit City route of getting rid of the best employees? The CEO needs to get in his car and drive around until he finds a Circuit City so he can go in and ask how that strategy works.
Part of the employee thing may be due to various states hiking their minimum wages. To cut payroll you let go your more expensive, experienced workers and replace them with newer, less expensive, less experienced workers.
Lowe’s did the same - got rid of all the department managers - the ones who knew a thing or two about their department - and replaced them with kids who know nothing but will work for minimum wage.