Service Doesn't Matter to Business?

Stories like Circuit City's Layoffs make the news from time to time, showing once again that Service Doesn't Matter to Business. It makes no sense that you would always cut costs at the point where you make your money: the front line. Sure you can hire less experienced workers for less money; it will probably save a bundle. But in a time of stiff competition, well, I'll say it again. It makes no sense.
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