Circuit City Stores Inc. (Richmond, Va.) has announced plans to cut about 2000 jobs and to spend $150 million in the coming fiscal year to open eight new stores, relocate up to 22 outlets and remodel more than 200 others.
W. Alan McCollough, Circuit City's chairman, ceo and president, said his company is taking those steps because “our retail segment continues its own evolution and we must participate.”
Circuit City said 1800 of the job cuts will take place at its 626 stores across the U.S., while the remaining 200 will take place at its service center. The company employs about 42,000.
The retailer is also continuing to revamp and expand its store base. John Froman, executive vp and coo, said the company's plans include “relocating 18 to 22 stores, fully remodeling up to five stores, completing the next phase of remodeling in approximately 200 stores and opening about eight new stores in fiscal 2004.”