ROI on RIF: but were the e-mails pink?

Last Tuesday, RadioShack notified about 400 workers that they were being dismissed immediately as part of planned cuts...via e-mail.

After being told of job cuts, and that affected employees would be e-mailed, employees at the Fort Worth headquarters got messages saying: "The work force reduction notification is currently in progress. Unfortunately, your position is one that has been eliminated." (they must have fired the marketers as it appears accounting is now in charge of messaging)

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." (well, with language like that they must have kept at least one marketer)

But hey, their stock price rose by 1%. (best return yet on their e-mail campaigns)

Comments

[David Reich]

Obviously, no marketer or p.r. person was involved in handling these layoffs. Their stock price may have gone up 1%, but this mis-handling of a workforce reduction will cost Radio Shack in terms of bad p.r. and lost sales.

The fact that it's made headlines and we're even blogging about it shows how poorly this was done. Had it been handled in a decent, compassionate way, the only news would have been on the PR Newswire and short blurbs in the financial section, and that would have been the end. Instead, it's getting major press. I first heard about it on The Today Show, and the anchors were saying how nasty it was.

Wonder how many people that day decided not to buy a battery or cellphone at Radio Shack, but went instead to Best Buy or Circuit City?