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Friday, April 27, 2007 3:09 AM

Managers are Passé

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Circuit City started the ball rolling by Cutting More Than 3,500 Jobs.

A new plan for layoffs at Circuit City is openly targeting better-paid workers, risking a public backlash by implying that its wages are as subject to discounts as its flat-screen TVs.

The electronics retailer, facing larger competitors and falling sales, said Wednesday that it would lay off about 3,400 store workers -- immediately -- and replace them with lower-paid new hires as soon as possible.

The laid-off workers, about 8 percent of the company's total work force, would get a severance package and a chance to reapply for their former jobs, at lower pay, after a 10-week delay, the company said.
Citigroup stepped up to the plate big time with a massive Massive Restructuring Plan.
Citigroup Inc. said it will eliminate 17,000 jobs, or 5 percent of its workforce, as part of a broad restructuring plan designed to cut costs and bolster its long underperforming stock price.

Citigroup plans to move more than 9,500 jobs to lower-cost locations worldwide, with about two-thirds through attrition. It will also eliminate layers of management, often increasing the number of workers reporting to each manager.
Wal-Mart decided to follow suit by cutting manager jobs at Sam's Club.
The world's largest retailer, is cutting about 1,000 management positions at its Sam's Club stores, a spokeswoman for the company's warehouse chain said on Thursday.

Wal-Mart is consolidating about 2,800 salaried-manager positions at some 580 U.S. Sam's Club stores, spokeswoman Susan Koehler said.

The restructuring, which began in early March and is expected to be completed within the next couple of weeks, was done to improve customer service and gain more flexibility in managing the stores rather than to cut costs, Koehler said.

The company has created three higher-paying positions to replace about 1,800 of those jobs and is also offering affected employees other positions in the company, Koehler said.
  • Wal-Mart is "consolidating" 1,800 jobs down to 3
  • Offering (presumably lower paying jobs) to those who were downsized. Most took it even though jobs are said to be plentiful.
  • This was not done to cut costs but to improve service
Managers? Bah humbug. Who needs em? Get rid of them all and customer service will soar. They are after all, so Passé. What company will be next to realize that?

Mike Shedlock / Mish

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