It seems that Circuit City is choosing a very expensive way to save money; by firing 3400 of their highest paid (= most productive, most experienced) employees. In doing so, they appear to have opened themselves up for age discrimination lawsuits in California--a state where tort law is notorious for awarding billions on flimsy evidence. Ouch.
Along these lines, I had a discussion about this kind of thing with an older gentleman at my church. He used to sell appliances for Sears and quit because they cut his pay to the point where it wasn't worth it to him anymore--about 20 years back. A lot of his colleagues quit as well, and were replaced by young men in their teens and twenties who, charitably speaking, had never bought an appliance in their lives and had the knowledge to prove it.
The result? A store that used to sell more appliances than any other in the state (one of the tops in the nation) is now a virtual ghost town. The man who left? He still drives a bus part-time and is one of the most spry 80-year-olds I've ever seen. He could be selling a lot of Kenmore appliances if they made it worth his while.
Just like with Circuit City, Sears chose a very expensive way to save money. Hopefully it'll open up opportunities for their competitors to clean their clock.
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