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Circuit City to cut more than 3,500 jobs
By ZINIE CHEN SAMPSON, Associated Press Writer
1 hour, 43 minutes ago
RICHMOND, Va. - Circuit City Stores Inc. said Wednesday it plans to cut costs by laying off about 3,400 retail workers, or 8.5 percent of its in-store staff, and hiring lower-paid employees to replace them. It is also trimming about 130 corporate information-technology jobs.
Its shares rose more than 2 percent in afternoon trading.
Circuit City, the nation's No. 2 consumer electronics retailer behind Best Buy Co. Inc., said the store workers being laid off effective Wednesday were earning "well above the market-based salary range for their role." They will be replaced as soon as possible with employees who will be paid at the current market range, the company said in a news release.
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The Richmond-based company also plans to outsource its information-technology infrastructure operations to International Business Machines Corp., a move that is expected to cut IT expenses by more than 16 percent over the seven-year contract. About 50 of Circuit City's IT workers will move to jobs with IBM and remain on the Circuit City contract. The other 80 corporate positions will be cut.
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By ZINIE CHEN SAMPSON, Associated Press Writer
1 hour, 43 minutes ago
RICHMOND, Va. - Circuit City Stores Inc. said Wednesday it plans to cut costs by laying off about 3,400 retail workers, or 8.5 percent of its in-store staff, and hiring lower-paid employees to replace them. It is also trimming about 130 corporate information-technology jobs.
Its shares rose more than 2 percent in afternoon trading.
Circuit City, the nation's No. 2 consumer electronics retailer behind Best Buy Co. Inc., said the store workers being laid off effective Wednesday were earning "well above the market-based salary range for their role." They will be replaced as soon as possible with employees who will be paid at the current market range, the company said in a news release.
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The Richmond-based company also plans to outsource its information-technology infrastructure operations to International Business Machines Corp., a move that is expected to cut IT expenses by more than 16 percent over the seven-year contract. About 50 of Circuit City's IT workers will move to jobs with IBM and remain on the Circuit City contract. The other 80 corporate positions will be cut.
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