Circuit City Cuts Wages to Juice Profits

The electronics retailer is also outsourcing its IT functions and mulling a sale of its Canadian unit as it faces heated competition

Circuit City Stores (CC) said Mar. 28 that it's planning to lay off around 3,400 store employees – but only to hire them again at lower wages. The Richmond, (Va.) consumer electronics retailer will also outsource its information technology department and possibly sell its Canadian unit InterTAN, in an effort to manage costs and survive better in its battles against rivals.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.