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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (73342)	2/28/2001 4:34:54 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

Circuit $hitty warns, in a mealy-mouthed sort of way. Lays off 300 and takes the charge: biz.yahoo.com ``The fourth quarter results reflect generally healthy sales in December, which is the highest volume month of the quarter,'' said W. Alan McCollough, president and chief executive officer of Circuit City Stores, Inc. ``Since that time, we have experienced a general fall off in sales across all categories. As we look at the coming fiscal year, we must plan conservatively and assume that these patterns will not change dramatically during the first half. We are in the process of completing our projections for next fiscal year and expect to provide more information related to those projections with the release of fourth quarter sales next week. ``We are closely examining our cost structure to ensure that we are operating as productively as possible,'' McCollough said. ``We are reducing our workforce primarily in our corporate and division offices by approximately 300 Associates. Earlier this month, we reduced our field organization structure recognizing that new store openings and remodels will be limited in the coming year. These reductions create a span of control similar to other retailers in our position on the growth curve. We regret the impact of these decisions on our Associates, but believe they are critical business decisions that must be made. We do not expect these workforce reductions to have any impact on customer service in our stores, and we remain focused on providing the best service possible.'' The fourth quarter and full year earnings expectations include pretax, one-time severance costs of $5 million related to the workforce reduction. After the reductions, Circuit City has approximately 53,400 Associates.