Circuit City Follows Store Closings With 3,500 Layoffs
CE retailer Circuit City, which announced both store shutterings and a management shakeup last month, has moved forward with the next stage of its restructuring.
In what the company calls “additional changes to improve financial performance,” Circuit City will let go of 3,400 sales people, with an eye towards replacing them with employees willing to work for less. They will also eliminate more than 100 IT jobs, in conjunction with a new deal in which such operations will be handled by IBM.
Employees who were let go on Wednesday will both receive severance packages, and have the opportunity to re-apply for their old positions, albeit at a reduced salary, after ten weeks.