We love this kind of story. Earlier this year, the Circuit City chain, which wasn't doing so well, decided it could save money by firing 3,400 employees and replacing them with folks who'd work cheaper. In most cases, it meant getting rid of salespeople who knew about computers and electronics and the equipment sold in those stores, and bringing in kids who didn't know as much.
So, how has this worked out? Well, Circuit City just reported its fifth straight losing quarter and warned stockholders that it won't post a profit for this holiday season, either. When you're selling electronics equipment and you can't make money at Christmas, you're really doing something wrong. But at least they've wised-up a little and are now trying to hire a lot of their old, more knowledgeable employees back.