It was only last year that Radio Shack opened their new multi-million dollar office complex in downtown Fort Worth. Now, the company is in financial trouble, and has announced plans to lay off 400-450 workers in Fort Worth. Company officials say they are turning the company around after 18 months of declining profits. They have already closed 480 stores, combined two distribution centers, and closed 5 repair centers. Now the cutting has reached the headquarters in Tarrant County.
At the end of 2000, Radio Shack had 4,529 employees in Tarrant County. By 2006, 1000 of those workers were gone. Starting next month, they will eliminate 400 to 450 jobs at all levels in its Fort Worth headquarters. Maybe they weren't listening when Georgie told us how wonderful our economy is.
I guess I just don't understand the business mind. Why would a company with declining profits, build a new multi-million dollar headquarters complex? This kind of project sucks money out of a company and brings none in. Shouldn't a company with declining profits focus their attention on the retail outlets? That's where the money comes from.
Their next move will probably be to reward management with outrageously high bonuses. Isn't that what most American corporations do after a layoff?
There used to be a time when corporations showed responsibility. They paid their workers well, gave back to the community, and planned for long-term growth and prosperity. Now they are all focused on making as much as they can as quickly as they can, with not a thought given to employees or the community. The name of the game is to push up stock prices, so the owners and management can get rich quickly, regardless of what it does to the future of the company, or our country.
It looks like we can also expect more layoffs in the future from Radio Shack. Radio Shack vice-president, Jim Fredericks said, "We can't say this is the end of it." He says the company must get its costs in line with its revenues.
That's what's wrong with all, well maybe that's too cynical, most of American companies today. They only see the stockholders and have forgotten about their employees.
ReplyDeleteIt's sad, really. They are putting themselves out of business with this shortsightened. Who will buy their crap when the American workers are all unemployed?
Random thought, when we were fighting the commies, it was down right patriotic to "take care of your own." Now companies fire their American workers, wholesale, to employe (exploit) some poor commie child half way around the world. Now who's unamerican?