While companies everywhere are tightening their workforces in hopes of cutting costs, this electronics store has actually accomplished the desired end result — for now. However, there are still some things that need to change. And according to Mark Wattles, "who holds a 6.5% stake," one of them is the company's management.
Someone who agrees with Wattles is Burt Flickinger, managing director of Strategic Resource Group.
"Mark...is right," he says. "Dramatic things have to be done in terms of changing management. Minus 10% same-store sales? A company cannot survive for more than a few years with those trends."
The trend Flickinger is referring to? Circuit City stores open just a year saw a 10% drop in sales at the end of February.
Maybe more than a few employee cuts will be needed to keep Circuit City's profits up.
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