Not so reliable, not so dependable.

Article for Circuit City Layoffs

Circuit City was said to cut more than 3,500 jobs from its store workers due to falling sales. Workers who were laid off were allowed to reapply for their jobs after a 10-week delay. By doing so, workers would get lower pay and have to work at the same job they did before. With the urban sprawl of companies such as Wal-Mart, Circuit City has lost its competitive edge against these major corporations. It is hard for companies to sell specifically one item when a major store sells almost everything at a much lower price. The article makes a good point when it talks about the wrong way in which Circuit City fired its workers. The majority of their store workers are knowledgeable, and because they are, customers are more likely to shop there to get information and help. Unlike Wal-Mart, which mainly focus on price, Circuit City can use their workers for a competitive advantage but since it chooses not too, the future of this company looks bleak.

I can see why Circuit City would make such a decision, since the majority of its responsibilities are due to stock holder and not to their employees. What Circuit City did could be considered legal but in no ways moral. There are many employees who depend on this job and the massive layoffs could have affected the life of many. Circuit did not choose its employees and from the view point of consumers, it can make the company look cold and heartless. It is not detailed what the severance package contains but by the lack of mention, it is probably nothing much. In the short run, Circuit City may have benefited from this decision but the results for the long run is yet to be seen.