Skip to main content

I just wanted to make some basic mathematical observations about today’s Home Depot news, perhaps pointing out some mileposts in our ongoing national decline.  (Discussion below)

Home Depot announced today that it will lay off 950 people at call centers in three states.

If we assume that the fully-loaded cost of an average call-center employee is $75,000 (a total guess) that means Home Depot will save about $71 million in annual wages and benefits.

Interestingly, that $71 million is about 1/3 of the $210 million Robert Nardelli received in severance when he left Home Depot.

Now I would not argue for keeping underutilized call centers open for no reason.  And it is hard to argue that the housing market will recover any time soon.  (The housing bubble drove Home Depot's over-expansion).  But there should be certain standards of decency for treating employees.

According to an interview on NPR this morning, employees laid off today will not be getting meaningful severance packages.

As an alternative, Home Depot could have given Nardelli $0 – when he was essentially fired for cause – and each of the 950 employees who were just laid off $221,000 each (probably 3-5 years of salary) in severance, and come out equal.

But, I guess, the latter would be outrageous...

The former (Nardelli’s package), I guess, was just fine.

Originally posted to Minerva on Tue Dec 04, 2007 at 09:48 AM PST.

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site