SAN FRANCISCO -High-end CE specialty chain Good Guys has pink-slipped some 450 employees, or about 10 percent of its work force, to help ensure long-term profitability amid the softening economic climate.
The staff reductions include 125 sales and 300 sales support positions, and 25 jobs at its corporate headquarters, distribution center and call center.
The company has also instituted a new hiring policy that eliminates over-staffing to keep payrolls consistent with sales volume. As part of the effort, the retailer has introduced a new compensation plan for commission-based sales personnel that raises both performance requirements and earnings potential for top sellers. The company said the plan more accurately reflects current selling margins and places a premium on experience.
Founder, chairman and CEO Ron Unkefer said the "internal streamlining" was part of an ongoing restructuring designed to optimize profitability and drive efficiencies.
"It is imperative that Good Guys anticipates and preempts potential hurdles to long-term profitability," he said, "and continues to take the logical steps to focus the company squarely on the top-half of the market."