Circuit City to “replace” 3,400 workers… with lower paid ones

Circuit City To Cut 3,400 Workers, Outsource Tech To IBM – InformationWeek

The outsourcing initiative is part of a broader restructuring program at Circuit City under which the company is cutting 3,400 workers who it said were paid “well above the market-based salary range for their role.” In a statement, the company said it would replace those employees with lower paid workers.

Circuit City also said it plans to close 60 stores located outside the United States this year. In its most recent third quarter, Circuit City posted a loss of $16 million.