Circuit City announces to today that they are going to let go of 3400 workers who make more than the market range and will replace them with cheaper workers.
While I understand, too well, the need to have operations that are profitable, moves such as this only impairs quality. So these workers who make more are presumable experienced personnel who will now be canned for new hires.
Circuit City will not be getting any of my business, and I will be writing them to tell them so. There is something more broken with their model if they cannot be profitable otherwise. In my opinion, of course. I recognize that there is room for other opinions and I could argue the opposite side. But firing people to make way for cheaper workers cheapens Circuit City's image. Would I want to go to work for them? I don't think so.
03.29.08 addendum: Mish has a more detailed post here