Dumb fucks. Bloomberg (12.21.07), via Eschaton:
"Circuit City Stores Inc., the second-largest U.S. consumer-electronics retailer, reported a fifth straight loss and said it won't make money this quarter, when it typically generates most of its annual profit." Circuit City Loss Widens; Shares Plunge on ForecastNot that this decision had anything to do with it. "Circuit City, which cut 10 percent of its U.S. workforce this year and hired people willing to work for less, is losing market share to larger rival Best Buy Co. Sales in stores open at least 12 months fell 5.6 percent in the third quarter." Mind you this kind of business savvy doesn't come cheap. Let's recap the brilliant strategy. Washington Post (03.29.07):
"Circuit City fired 3,400 employees in stores across the country yesterday, saying they were making too much money and would be replaced by new hires willing to work for less." Circuit City Cuts 3,400 'Overpaid' WorkersThe gratitude and generosity was overwhelming. "The company gave the dismissed workers severance pay and told them that after 10 weeks they were free to apply for any openings. Employees reached by a reporter said they were notified yesterday morning and told to leave immediately." At the time, Circuit City said it "'deeply [regretted] the negative impact that was had on these folks'" And the CEO? You want to know how he did last year? "Circuit City chief executive Philip J. Schoonover received a salary of $716,346, along with a $704,700 bonus last year. He also has long-term compensation of $3 million in stock awards and $340,000 in underlying options, according to company filings." And you thought you had to be smart to make a lot of money.