Roughly 400 RadioShack employees were notified they lost their job through and e-mail message. The layoffs are part of a restructuring after the Fort Worth, TX-based electronics retailer’s stock price has fallen steadily over the past few years.
The company announced Aug. 10 that it would cut 400 to 450 jobs, mostly at headquarters, to lower expenses and improve its long-term competitive position in the marketplace. At that time, officials informed employees that layoff messages would arrive via e-mail.
“The work force reduction notification is currently in progress. Unfortunately your position is one that has been eliminated,” the e-mail read.
The employees were then given the option of using the company Intranet to ask questions. Laid-off workers got one to three weeks pay for each year of service, up to 16 weeks for hourly employees and 36 weeks for those with base pay of at least $90,000.
RadioShack has also closed almost 500 stores and consolidated distribution centers to make up for the drop in sales. Sales of cellular phones, a key item for RadioShack, have been disappointing.