Consumers cited Circuit City's most obvious failing as its customer service, according to a 2008 article from Time. "In March 2007, [Circuit City] announced plans to lay off its highest-paid hourly employees, including salespeople, and replace them with cheaper workers. That same year, then CEO Philip Schoonover received some $7 million in compensation."
The highest-paid employees were the most experienced employees (who had accumulated higher wages over the years). Circuit City also outsourced its IT department. After the company fired over 3,000 employees, WSWS reported, "The firings are the most abrupt and brazen manifestation of a trend by corporate America to push out older and better-compensated workers and replace them with a smaller, younger, uninsured and underpaid workforce."
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I know this case study well. Follett is Circuit City