When Circuit City announced that it was firing its highest paid sales people, I thought that it would be counter-productive. The lower paid people would probably not be as knowledgeable and would thus sell less. Also, many customers would boycott Circuit City and go to other electronic retailers. This week my thoughts proved correct. Circuit City's holiday sales fell 11.4 percent and its stock is "about 80 percent below where it was the day before it made the staffing announcement" last spring.
"Cost-cutting backfires for retailer Circuit City", Duluth News Tribune, September 12, 2008, Rachel Beck, Associated Press. For an online version, try http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/01/13/BUFBUD4TG.DTL
If that doesn't work because of archiving, try a search for
"Circuit City" staffing "Rachel Beck"
