Skip navigation
Watchlist Sponsored By :


Current DateTime: 09:35:22 12 Nov 2009
LinksList Documentid: 24355697

FEATURED QUIZZES


Current DateTime: 09:35:22 12 Nov 2009
LinksList Documentid: 33793611
  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

  • The Many Myths of Coca-Cola

      Can you tell which statements are true, and which ones are just rumors?

  • Think You Understand Markets?

      We've selected some questions from the Financial Industry Regulatory Authority's test of investor knowledge. See how you do ...


Current DateTime: 09:35:22 12 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
Circuit City Shares Higher On Restructuring Plans
By: AP | 28 Mar 2007 | 03:16 PM ET
Text Size

Circuit City Stores [CC  Loading...      ()   ] said Wednesday it plans to cut costs by laying off about 3,400 store workers and hiring lower-paid employees to replace them, and by trimming about 130 corporate jobs.

The news sent shares up about 3% in morning trading.

Circuit City, the nation's No. 2 consumer electronics retailer behind Best Buy [BBY  Loading...      ()   ] said the store workers being laid off were earning "well above the market-based salary range for their role." They will be replaced with employees who will be paid at the current market range, the company said in a news release.

"We are taking a number of aggressive actions to improve our cost and expense structure, which will better position us for improved and sustainable returns in today's marketplace," Circuit City CEO Philip J. Schoonover said in a statement.

The Richmond-based company also plans to outsource its information-technology infrastructure operations to International Business Machines [IBM  Loading...      ()   ], a move that is expected to cut IT expenses by more than 16%. 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.

The changes follow the company's announcement this winter of planned cost-cutting measures and management moves to improve sales and cut expenses.

In February, Circuit City terminated its lease on a previously closed distribution center in Columbus, Ohio, at a loss of $4.8 million, but the move is expected to cut costs associated with the lease by about $6 million. It also finished a previously announced closing of a Louisville, Ky., distribution center that was used primarily for store fixtures and signs.

In Circuit City's international operations, the company has hired Goldman Sachs to advise the company on strategic options for its InterTAN Inc. unit, which could include selling the business.

Circuit City closed about 55 stores in Canada in February as previously announced, and expects to close about 10 more stores in the first half of fiscal 2008.      

       

© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • Billboard allows music lovers to watch concerts for free online, with five different camera angles.
  • US real estate prices have fallen dramatically, but some places are still doing well. See the best-performing zip codes this year.
  • Vote and suggest your own, and remember--there's a fine line between a hero and a zero.
  • A European dating site finds lovelorn singles from one specific country to be uglier than any other. Who is it?
  • Contributor David Pogue looks at two of the latest efforts to perfect the digital pocket camera.
  • Just in time for the holidays, the Triumph company of Japan offers the latest innovation in women’s undergarments.
ADD COMMENTS
Remaining characters


Current DateTime: 06:21:11 12 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 09:13:47 12 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:01:49 12 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:01:49 12 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters