Do Layoffs Work?

Do you remember this post about Circuit City?

So, this is the story about Circuit City laying off 3400 salespeople in 2007.

This article mentions Circuit City laying off 3900 salespeople in 2003.

Last November, Circuit City filed bankruptcy.

Here we are in 2009.

Just before I left for Punta Cana, I read about another retail chain that was going to lay off 370 employees because their sales were off by $100 million last quarter. When I returned, I learned that the same chain had done it before.

The chain cited the deteriorating economy for the decision.

As an expert I wonder how much of that $100 million was due to the economy and how much was due to laziness, lack of motivation, or undeveloped sales skills of some of their store managers and associates.

Last Friday, I asked the executives of that chain this question.

“If we could quickly and dramatically have an impact on your in store salespeople, would that be worth a 30 minute phone call? “

We’ll see if they call today.

I don’t know history like The Archaeologist, but I have heard something about history repeating itself.

If you know a CEO or majority owner of a company that may be contemplating layoffs, forward this post to them with the suggestion that they contact me and mention that you sent them.

One thought on “Do Layoffs Work?

  1. Right on Rick. Taking time to develop your people and giving them clear goals and direction will help you sustain in this type of climate. Which companies are growing? Are you one of them? We looked at our staff and there was lots of complacency, we replaced that with driven people who aren’t afraid of hard work. Our company is growing while others like me are trying to figure out what we are doing. Economies are what you make it, it does not make you.

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