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Hot Issue: Worker Issues

1/17/08
Circuit City Proves Penny Wise and Pound Foolish

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When Circuit City made the decision last March to lay off 3,400 of its most experienced sales associates because they were making too much money, many people believed the move defied logic. Why, after all, would a company already struggling to keep up with the competition intentionally weaken the part of the organization that dealt directly with consumers? How does Circuit City fix the situation created by the company's decision to go with less experienced store staff?

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