Heads continue to roll at RadioShack HQ

http://www.twice.com/article/CA6366255.html

Jim Hamilton, executive VP of merchandising and marketing joins former president and COO Claire Babrowski and former CFO David Barnes in walking the plank.

Not content with taking an axe to the deadwood at the senior management level, newly-appointed chairman/CEO Julian Day is eliminating up to 450 positions at the head office level.

None of this is especially unusual to observe in a struggling retailer. Personally, the fact that it took Day less than a month to identify 450 HQ personnel who could stand to get the sack indicates to me that RadioShack's tail has been wagging the dog for far too long. What makes the story hot, is how he's doing it: firing people by email:

http://www.foxnews.com/story/0,2933,211318,00.html
http://www.cepro.com/news/editorial/14926.html

A bold, unconventional move to be sure, and one that's drawing fire from the media, HR consultants, and other soft fuzzy types who care about employees "feelings."

If you recall, one of Day's first executive decisions last month was to eliminate quarterly conference calls with the financial analysts.
http://www.forbes.com/facesinthenews/2006/07/17/radioshack-conference-calls-cx_gl_0717autofacescan02.html?partner=links
Some people (mostly analysts and shareholders) have taken issue with Day's decision to reduce the transparency of management's decision making. On the other hand, if you have nothing nice to say about your company, you're better off not saying anything at all.

RadioShack needs someone at the wheel who isn't afraid to make tough, unpopular calls. And taking the helm of a loser challenged company that's wallowing in its own corporate inertia requires doing lots of tough, unpopular things to stem the bleeding, batten down the hatches, and start making headway. Whether or not Day can plot a new course forRadioShack is subject to debate. Then again, skeptics thought Kmart was sunk before he came on board.

What's with all the ship metaphors? Maybe reading this was the reason:
http://longorshortcapital.com/peak-piratery-time-to-walk-the-plank.htm

Sphere: Related Content