Circuit City's Job Cuts Backfiring, Analysts Say

wahington post ^ | 5-2-07 | Amy Joyce

[Hydroshock]

Circuit City fired 3,400 of its highest-paid store employees in March, saying it needed to hire cheaper workers to shore up its bottom line. Now, the Richmond electronics retailer says it expects to post a first-quarter loss next month, and analysts are blaming the job cuts.

The company, which on Monday also revised its outlook for the first half of its fiscal year ending Feb. 29, 2008, cited poor sales of large flat-panel and projection televisions. Analysts said Circuit City had cast off some of its most experienced and successful people and was losing business to competitors who have better-trained employees.

Circuit City expects to report a loss for the first quarter because of poor sales of expensive televisions, which often require experienced salespeople. (By Steve Helber -- Associated Press)

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"I think even though sales were soft in March, this is clearly why April sales were worse. They were replaced with less knowledgeable associates," said Tim Allen, an analyst with Jefferies & Co.

In particular, the televisions showing disappointing results are "intensive sales" requiring more informed employees, Allen said. "It's a big-ticket purchase for somebody. And if they feel like they're not getting the right advice or are being misled by someone who doesn't know, it would be definitely frustrating. They will take their business elsewhere."

Circuit City said in March that sales would be volatile for the next several months as the company adjusts to the changes. But yesterday the company said it was too early to tell whether the dismissals had caused any of the falloff in April sales b

[laotzu]

Now in their twenties, they remain...hands down, the most enjoyable three people I've ever met. And I was so worried before...so aware of the enormity that faced me. I've never had so much fun.

I would very much appreciate your reporting back to me your escapade with your nieces. We would really be tickled to find others enjoying this commen peculiar amusement.

Incidently, my oldest has been hired to spin fire at the Renaissance Festival the last two years, and probably will again at the next one. Feel welcome to say hello....he would get a kick from meeting a complete stranger so aware of his childhood memories.

[laotzu]

p.s. his group is “Brotherhood of the Flame”. Your costumes are truly impressive.

[Xenalyte]

Many thanks! The barbarian and elf ones I own; the Indian belongs to TRF; and Margarita's muy fabulosa Spanish ensemble was custom-made by one of my best friends, who's a stellar seamstress.

[laotzu]

some from my collection:

Well, art is art, isn't it? Still, on the other hand, water is water! And east is east and west is west and if you take cranberries and stew them like applesauce they taste much more like prunes than rhubarb does. Now, uh... Now you tell me what you know.
Groucho Marx

When choosing between two evils I always like to take the one I've never tried before.
Mae West

Madam, there's no such thing as a tough child - if you parboil them first for seven hours, they always come out tender.
W C Fields

Do not worry about your problems with mathematics, I assure you mine are far greater.
Albert Einstein

The only difference between a tax man and a taxidermist is that the taxidermist leaves the skin.
Mark Twain

[dfwgator]

My theory is that since most college graduates use the Internet to do research, they just assume that most customers will do their own research about products on the Internet, and therefore there no longer is a need for knowlegeable salespeople.

On paper it seems to be a good idea, but in the real world, not so much.