DHL, Circuit City workers may have seen layoffs coming
Filed under: Technology, Career, Recession, Bankruptcy
As Circuit City seeks bankruptcy protection, and DHL U.S. Express announced plans to lay off 9,500 workers, I can't help but think back to decisions the companies made six months to a year ago that foreshadowed these moves Monday. For Circuit City, it was laying off workers that I think helped lead it to bankruptcy, and for DHL it was a merger that eventually led to jobs being lost. Either way, workers were harshly affected.
Circuit City has had its share of poor decisions over the years, but at least customers knew when walking in that it had some of the most knowledgeable sales people in the industry who were willing to help. I don't know much about electronics, but after going into a Circuit City store, I knew a lot more and could make an informed decision.
But a year ago, the company laid off thousands of its experienced salespeople. Sure, it saved money with fewer workers and the cheaper employees who remained, but it easily looked like a dumb move at the time by anyone who had done business there.
Circuit City, the struggling Big Box electronics retailer, announced earlier this week that it will be closing some 20% of its North American stores in an effort to regain profitability. It will shutter 155 of its 700 stores and lay off about 17% of its workforce.
The movement to convince Microsoft to continue XP past this June, when it was supposed to fade away as Vista became supreme, just became a lot more real to me. I bought a new Gateway with Vista with my tax rebate money. I was never that thrilled with XP, but after six days on Vista I am running back.
Computer geeks and anyone else who wants to find a wide selection of accessories for their computer systems will miss CompUSA when its doors close at the end of 2007. It's mind-boggling how the richest man in the world, Mexican retailer and telephone baron Carlos Slim, could turn a multi-billion investment into zero in just eight years. In 2006, CompUSA had $4 billion in sales; that's expected to drop to just $1.5 billion in 2007 with more than 100 stores closed throughout the year.