Republican executives, managers fire employees via e-mail
- From: "Joe S." <anon@xxxxxxxx>
- Date: Wed, 30 Aug 2006 20:11:23 -0400
QUOTE
RadioShack Lays Off Employees Via E-Mail
RadioShack Lays Off Nearly 400 Employees Via E-Mail; Management Experts
Criticize Method
The Associated Press
FORT WORTH, Texas - RadioShack Corp. followed through on its announced plans
to cut about 400 jobs, but the electronics retailer has been forced on the
defensive about its method of notifying laid-off employees by e-mail.
Employees at the Fort Worth headquarters received an e-mail Tuesday morning
telling them they were being dismissed immediately.
"The work force reduction notification is currently in progress," the notice
stated. "Unfortunately your position is one that has been eliminated."
Company officials had told employees in a series of meetings that layoff
notices would be delivered electronically, spokeswoman Kay Jackson said. She
said employees were invited to ask questions before Tuesday's notification
on a company intranet site.
Management experts expressed surprise at RadioShack's use of electronic
notification instead of face-to-face meetings with supervisors.
Derrick D'Souza, a management professor at the University of North Texas,
said he had never heard of such a large number of terminated employees being
notified electronically. He said it could be seen as dehumanizing to
employees.
"If I put myself in their shoes, I'd say, 'Didn't they have a few minutes to
tell me?'" D'Souza said.
Laid-off workers got one to three weeks pay for each year of service, up to
16 weeks for hourly employees and 36 weeks for those with base bay of at
least $90,000, the company said.
The company announced Aug. 10 that it would cut 400 to 450 jobs, mostly at
headquarters, to cut expenses and "improve its long-term competitive
position in the marketplace."
RadioShack has also closed nearly 500 stores, consolidated distribution
centers and liquidated slow-moving merchandise in an effort to shake out of
a sales slump. Sales of cellular phones, a key item for RadioShack, have
been disappointing.
Last month, the company hired a former Kmart executive, Julian Day, as chief
executive, replacing an interim leader who stepped in when the previous CEO
quit after admitting lying on his resume.
One of Day's first actions was to cancel conference calls with analysts to
review RadioShack's financial results, an unusual step for public companies.
Shares of RadioShack rose 29 cents, or 1.6 percent, to close at $18.21
Wednesday on the New York Stock Exchange.
Copyright 2006 The Associated Press. All rights reserved. This material may
not be published, broadcast, rewritten, or redistributed.
END QUOTE
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