RadioShack lays off about a dozen at Fort Worth headquarters

Posted Wednesday, Jul. 24, 2013  comments  Print Reprints
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RadioShack, struggling to revitalize after another money-losing quarter, confirmed Wednesday that it laid off “10 to 12” people this week at its Fort Worth headquarters.

“They were part of the ongoing decisions that take place at any company,” said Kirk Brewer, a company spokesperson, describing what he called a “very selective reduction in force.”

One source at the Fort Worth-based consumer electronics chain, who declined to be identified, said three vice presidents were among those let go.

A staff reduction of a dozen or fewer would constitute one of the smallest layoffs carried out by RadioShack in recent years. In seven years, the employee count at its downtown headquarters as dropped from more than 2,000 to slightly fewer than 1,000, spokeswoman Merianne Roth said.

During a teleconference with financial analysts on Tuesday, Chief Executive Officer Joseph Magnacca made no reference to the terminations during a discussion of RadioShack’s workforce. He did address a new training program for the sales staff and a new incentive scheme that removed higher commissions on low-margin, post-paid cell phones.

Since taking over in February, Magnacca has reshaped top management by hiring several new executives, including Michael DeFazio, a former colleague at Walgreens who is senior vice president for store concepts, and Jennifer Warren, a veteran retail marketing strategist, as chief marketing officer.

On Tuesday, RadioShack announced a wider second-quarter loss but said comparable-store sales grew by 1.3 percent, the first positive sales report since 2010. It also disclosed that its chief financial officer, Dorvin Lively, had resigned to take a similar job with Planet Fitness.

RadioShack said that Holly F. Etlin of AlixPartners, a turnaround consultant that it working with the company, would serve as interim chief financial officer. Lively was interim CEO after Jim Gooch was fired last year, but was passed over for the permanent top job when the board hired Magnacca, a former Walgreens executive.

Barry Shlachter, 817-390-7718

Twitter: @bshlachter

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