Monday, November 10, 2008

How businesses fail

Consumerist has an interesting chart depicting Circuit City's fall from grace - on the day the remaining stores in the US chain files for protective bankruptcy. The first major mistake? Sacking 3,400 staff to replace them with cheaper replacements. When will companies learn that people who earn a little more usually do so for a reason, and while you can cut a few bucks off the wage bill, you're going to lose more by the drop in customer service.