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U.S. News Circuit City fires thousands to hire cheaper workforce

Circuit City Stores, the second-largest US electronics retailer, fired 3,400 of its highest-paid hourly workers and will hire replacements willing to work for less. The company said it has eliminated jobs that paid “well above” market rates. The retailer declined to state the old or new wages. CEO Philip Schoonover was paid $8.52 million in fiscal 2006, while the company’s top competitor Best Buy paid its CEO just $3.85 million, suggesting Circuit City’s proclaimed market-rate principle does not extend company-wide.
Main Source: Bloomberg


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