RadioShack Issues Emailed Layoff Notices

August 30, 2006 (PLANSPONSOR.com) - Employees at RadioShack Corp.’s Fort Worth headquarters have received notification of layoffs - via email.

The Associated Press reports that about 400 employees received an email Tuesday morning telling them they were being dismissed immediately. The email stated, "The work force reduction notification is currently in progress. Unfortunately your position is one that has been eliminated."

RadioShack spokeswoman Kay Jackson said company officials told employees in a series of meetings they would receive notification electronically, according to the AP. She said employees were given the chance to ask questions prior to Tuesday's email.

The company announced in August it would cut 400 to 450 jobs, mostly at headquarters, to cut expenses and "improve its long-term competitive position in the marketplace." It has closed nearly 500 stores, consolidated distribution centers and liquidated slow-moving merchandise in an effort to remedy a sales slump.

The company hired former Kmart executive Julian Day as its chief executive last month, replacing an interim chief who stepped in when CEO Dave Edmonson resigned after admitting his resume contained lies (See Radio Shack CEO Apologizes for Resume Discrepancies).

Rebecca Moore
editors@plansponsor.com