Over the past few years, RadioShack's (RSH) stock has seen a steady decline. Then again, the company looks like it is still stuck in the 1970s. Why go to RadioShack when you can get much more selection at places like Best Buy or Circuit City or even Wal-Mart?
True, the company has tried to do some innovative things, such as cutting a VOIP deal with Skype (which is a division of eBay). But, the fact remains that the value proposition for customers is amorphous.
The company has also had a lot of drama in the boardroom. That is, the company's former CEO resigned because of errors on his resume. Also, he did not appear for court on a DWI (driving while intoxicated) charge.
So, within the past few months, RadioShack has finally realized the world has changed and it has, as a result, initiated a restructuring. It means closing stores and firing people.
Yesterday, RadioShack sent a cold email to roughly 400 employees. The gist: "The work force reduction notification is currently in progress. Unfortunately your position is one that has been eliminated."
True, this is an efficient way of doing things. But why should the act of firing employees be efficient? Maybe it should involve a little bit of human interaction?
Then again, given RadioShack's disregard for shareholders, it definitely makes sense it has little regard for its employees.
Tom Taulli is the author of various books, such as the Complete M&A Handbook and operates InvestorOffering.com.
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Reader Comments (Page 1 of 1)
8-31-2006 @ 1:29PM
Jon Potter said...
This is certainly a tacky way of firing people. The very least a person deserves is a face to face meeting along with an explanation of the reason(s) for the firing.
If this is the way they treat their employees, then I have to think customers won't be treated any better.
My days of shopping at Radio Shack are over. It had turned into a jottem' down store anyway.