TrenchNews, Verse 7 (Updated)

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One of the bigger stories we missed last month was the Circuit City Saga. In a way, I’m glad I didn’t get to it because while most of the stories covered by Trenches are snapshots in time without a beginning or an end, this one actually plays out to a near conclusion. We know what happened, we just don’t yet know what Circuit City is going to do about it.

The CC Saga begins at the end of March when Circuit City fired 3400 employees because they were making too much money.

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.

The company said the dismissals had nothing to do with performance but were part of a larger effort to improve the bottom line. The firings represent about 9 percent of the company’s in-store workforce of 40,000.

“Retail is very competitive and store operations just have to contain their costs,” said Jim Babb, a Circuit City spokesman. “We deeply regret the negative impact that was had on these folks. It was no fault of theirs.”

No, we know whose fault it was. Wal-Mart’s. Continue reading