As mentioned previously in my blog entry of March 11, a major shareholder, Knightspointe Group, wants to replace the company’s current board of directors due to the huge loss my former employer, The Sharper Image ($22 million currently) incurred this fiscal year. In today’s edition of the Contra Costa Times, the company announced a few cost cutting measures.
Some of them include: eliminating sales commission, executive pay cuts (Richard Thalheimer, founder, chairman and CEO, 50%), and reducing the number of new store openings this year. While the latter two are steps in the right direction, I’m not sure it’s enough. Plus, I think eliminating sales commission won’t sit well among those who lose this incentive. Of course they will be told if you don’t like it, get out. This will also help reduce expenses, but create terrible morale.
My current employer is experiencing similar woes. About 20% of our home office personnel got laid off in January, and numerous others went on to other jobs because they weren’t comfortable with the changes. No wage increases this year. Retail is a very demanding and ever changing business.
I wouldn’t have it any other way.