Radiochack

DATE: 21st Nov, 2006

TO: Julian Dey

CEO, RadioShack Corp.

FROM: Gary Makhnov

HR Head and Senior level Task force Manager

SUB: Corporate Communication Issues during Layoffs

This memo enumerates the task forces’ recommendations regarding recent communication issues faced at RadioShack Corporation.

Our management is dedicated to addressing the most critical issues our company is currently faced with. We have made considerable advances in countering the widening financial deficit and falling profitability. We can safely say that RadioShack is on its way to recovery. This however will not be possible without the combined efforts of all our employees.

During the implementation of the new plan we had to undergo structural adjustments and layoff some employees which has led to a general feeling of dissent and distrust among employees. A damage control strategy is therefore needed in order to address the issues arising from within the company.

The termination of employees has also gained attention in local newspapers. This may lead to repercussions on share prices and existing partnerships with our stakeholders. In the past two years (2005-2006), the stock prices have been underperforming and the annual reports have an apologetic undertone. Our Public Relations office must be diligent in the coming months to handle the existing concerns until the issue subsides.

All of these issues will have widespread implications across the company. The terse nature and abruptness of the termination email has vastly lowered the employee morale. It did not help that it was a mass email and was not personalized in nature. This has also led to negative publicity and a general public outcry against the company. All these factors have a counter-productive effect on the measures taken by the firm to tackle and improve profitability.

The task force puts forth the following recommendations:

* Building employee confidence by regular communication by the top management.

*...