Print 36 comment(s) - last by Talon75.. on Jul 11 at 1:21 PM

Best Buy recently announced that it will be cutting 2,400 jobs

It's no secret that Best Buy is sinking under the weight of its competitors. With online retailers like Amazon flourishing with competitive prices, the brick-and-mortar electronics store is having trouble keeping up, and it's starting to show more and more as the company continues cutting jobs.

Best Buy recently announced that it would be cutting 2,400 jobs, which is about 1.4 percent of its total workforce of 167,000. About 600 of these cuts will come from the Geek Squad service while the other 1,800 will come from store staff.

This announcement comes after the company's decision to close 50 of its big-box stores in March of this year. It also cut 400 corporate and support jobs.

"These changes were previously announced as part of the leadership team's ongoing turnaround plan," said Best Buy in a statement.

The company aims to cut costs by $800 million by 2015.

In addition to increased competition with the likes of Amazon, Walmart and Apple, Best Buy has had internal issues with management. Former Best Buy CEO Brian Dunn recently quit after the board investigated his personal relationship with a female employee. Also, Best Buy chairman and founder Richard Schulze resigned from his position in June, which was one year earlier than expected.

Source: Market Watch

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

From a business side of things
By FITCamaro on 7/9/2012 4:28:10 PM , Rating: 5
Does the CEO sleeping with a female employee really impact the business?

It's not right or moral but what is the companies interest in it other than a violation of policy?

RE: From a business side of things
By Apone on 7/9/12, Rating: 0
RE: From a business side of things
By lightfoot on 7/9/2012 4:43:37 PM , Rating: 5
He's not on there to cause drama and bang female employees, he's there to make you money!

Those two concepts are not mutually exclusive.

If he's not making the company money, fire him for that, leave his personal business out of it.

RE: From a business side of things
By Apone on 7/9/12, Rating: 0
RE: From a business side of things
By lightfoot on 7/9/2012 5:06:39 PM , Rating: 5
I don't disagree, I'm just saying that there are a TON of under preforming CEOs out there that should be removed, but shareholders only care about scandals.

Being a bad CEO doesn't matter. Having relationships with employees does. It is a severely screwed up (and backwards) way to manage anything.

By artemicion on 7/9/2012 8:32:52 PM , Rating: 2
Are there any facts regarding the "personal relationship"? From what I read previously, Best Buy initiated an investigation and Dunn voluntarily resigned to avoid further investigation. So it certainly sounded like he did something worse than a mere sexual relationship. Maybe the employee threatened to sue?

By Solandri on 7/9/2012 11:37:38 PM , Rating: 2
The taboo against relationships between employees isn't because people think it's wrong. If Dunn and this woman want to bang each other, they're both adults and there's nothing wrong with it.

The problem is when this sort of thing happens between a manager/executive and subordinate, it opens up all sorts of questions. Do they really like each other? Is she doing it to try to get ahead? Is he somehow coercing her into doing it?

Rather than try to answer those questions, most companies simply prohibit the situation which leads to those questions. Nobody can really predict the market so a CEO's poor performance may simply be due to bad luck, not necessarily bad judgment. But you know exactly the Pandora's box you're opening when you enter into a relationship with a subordinate. It's entirely due to bad judgment.

RE: From a business side of things
By Reclaimer77 on 7/10/2012 10:54:08 AM , Rating: 1
He did something that was not politically correct. But there is NO indication it interfered with his work. The direction the company has gone since his leaving indicates quite the contrary, in point of fact.

Jesus Christ is this not America anymore? When a millionaire CEO can't even get some strange on the side, no wonder our economy is falling apart! Mind your own goddamn business.

RE: From a business side of things
By Apone on 7/10/2012 11:49:11 AM , Rating: 2
@ Reclaimer77

- When you represent the financial interests of others such as the company owners (aka stockholders), you're under the proverbial microscope so trying to stay under the radar ain't gonna' happen (especially for a CEO). Look at the facts, Best Buy has since been down-spiraling which Dunn didn't really fix, his apparent relationship was also uncovered, and then he suddenly quit. Why would everyone mind their own business on these red flags? And if you read the article, you would see that he abruptly quit just when Best Buy started its investigation (as if he was trying to hide something like, oh I don't know, possible mismanagement of funds or other company resources thus further compounding his misconduct).

RE: From a business side of things
By Master Kenobi on 7/9/2012 5:03:18 PM , Rating: 3
Yes, this brings to mind a certain Mark Hurd formerly of HP. A CEO that by all accounts really put HP back on track and kicking ass. Funny how it completely went to shit shortly after the revolving door of CEOs started.

RE: From a business side of things
By Samus on 7/9/2012 6:19:40 PM , Rating: 2
Couldn't agree more. If Hurd were still running HP, we'd most definately have another mobile ecosystem (WebOS) competing with Apple, Android, and if you consider their marginal marketshare competition, RIM and Microsoft.

WebOS was a real IOS and Android competitor. The hardware was well priced and decent quality (my HP Veer is still holding up, and is without a doubt the best phone I've ever had) and the 7" Touchpad, had it been released, would have been a huge hit at its $200 target price.

The only thing that killed WebOS was HP pulling it off the market too quickly, losing it developer support. They didn't even give it a year, and by the time it was shelved, practically all the bugs had been worked out of v2.0 and v3.0 (Touchpad) was extremely mature and stable from the get-go. To date, the WebOS interface still can't be bested as the most modern gesture-based UI.

I'm not a fan of Mark Hurd's outsourcing-oriented business model, but it made HP profitable, and that kept them innovative and competitive, unlike Dell who just outsources without being innovative or competitive.

RE: From a business side of things
By Lerianis on 7/10/2012 7:14:09 AM , Rating: 2
You joking? I wouldn't give a damned in the slightest who the guy was sleeping with, as long as it wasn't out and out illegal to sleep with the person (i.e. 'underage').

By zephyrprime on 7/10/2012 11:24:32 AM , Rating: 2
Honestly, I don't think most people care. I've owned many stocks before (although not Best Buy) and it's tough to get a good CEO so firing one because of immaterial problems like this is against my own financial interests in my opinion.

RE: From a business side of things
By Florinator on 7/9/2012 6:04:37 PM , Rating: 3
I thought it was basic knowledge that you're not supposed to dip your pen in company's ink... even more so when you're in a management position! It's not about how good the CEO is pursuing the company's best interests, but also how sound his judgement is. How can you trust the CEO if he can't make sound personal decisions?

RE: From a business side of things
By bupkus on 7/10/2012 12:26:46 AM , Rating: 2
you're not supposed to dip your pen in company's ink...
More importantly, Mark Hurd was never found dipping his pen in company red ink.

RE: From a business side of things
By Lerianis on 7/10/2012 7:16:48 AM , Rating: 2
With all due respect, most people couldn't care at all if you are 'dating a female employee'. That has gone on for YEARS and all the 'problems' from it come from everybody automatically assuming "Sleep with woman = give her perks and less harsh treatment". It doesn't always or even 1/10th of the time mean that.

By johnsmith9875 on 7/11/2012 9:52:59 AM , Rating: 2
Does a president of the USA sleeping with a female employee impact the country?

By lightfoot on 7/9/2012 4:39:54 PM , Rating: 2
It is almost a joke to think that a company that has helpful, knowledgeable staff at a local physical location where you can try out and buy products for a reasonable price could possibly be at a disadvantage with a company that does not.

To fix the problem all Best Buy needs to do is the following:
1. Have knowledgeable staff.
2. Have helpful staff.
3. Price products competitively.

If Best Buy had even two of these three requirements, Amazon would not be able to compete. Sadly they don't, and that is why I don't shop there anymore.

RE: Disadvantage?
By GuinnessKMF on 7/9/2012 5:10:18 PM , Rating: 2
No, the only thing that matters is cost. If I can get the same product at a reduced price, and not have to get out of my seat, why would I?

If I really need to test the product out, I can go to Best Buy, test it, and then get it cheaper (even after shipping) on amazon (from my phone while in the store at Best Buy).

I have zero sympathy for a company that does not stock HDMI cables under $40 (There is zero excuse for me not being able to walk into a BB and get a 10' HDMI cable for under $20 ... Firefold sells them for $5)

RE: Disadvantage?
By StevoLincolnite on 7/9/2012 5:22:43 PM , Rating: 2
Most developed nations are moving from your brick and mortar stores to a fully digital economy, which has been showing for several years now in how much money people spend online.
It's more convenient and cheaper with a larger selection and more competition to keep prices as low as they can be.

Stores like Best buy may close down, but you will have 10 online stores pop-up to take it's place, you will probably still always have your family run business if you like to look at things in person and for more personal customer service though.

RE: Disadvantage?
By DiscoWade on 7/9/2012 7:13:02 PM , Rating: 2
Not everybody values low prices above everything else. Many people value good customer service. For certain items, I would be willing to pay slightly more for better customer service. Sadly for Best Buy, they offer neither better customer service nor better prices. Asking me 25 times if I want an extended warranty is not good customer service. Not knowing your product is not good customer service. Making me pay extra for an "optional" fee is not good customer service. The only motivation to shop there is if I need something now. Best Buy is run by people who only look at the bottom line and not by people who know how to run a business. They look at profits but don't look at what it takes to get customers into and returning to the stores.

RE: Disadvantage?
By christojojo on 7/9/2012 9:25:42 PM , Rating: 2
Best Buy (at least near me) has been about over priced items, Lying staff that makes up information (oh that Pentium 4 is 4 times as powerful as that X2 (I kid you not). They over sell their over priced under qualified post service things too. $80 to install and Xbox 360? Really?

Sigh they lost me a long time ago and I only go when I need a Birthday gift or emergency repair part.

RE: Disadvantage?
By sigmatau on 7/9/2012 7:26:26 PM , Rating: 2
It was so funny when I asked a Best Buy employee, after he had walked past me twice without asking if I needed anything, if they sold crossover cables and he replied asking me "what does that look like?"

Kodak moments I tell you.

RE: Disadvantage?
By Kurz on 7/10/2012 10:15:24 AM , Rating: 2
Sorry I didn't know what Crossover cables were either.

Say Cat5 or Cat6, Ethernet Cable, I would Know what you were talking about.

RE: Disadvantage?
By johnsmith9875 on 7/11/2012 9:55:22 AM , Rating: 2
Quit asking the CUTE Best Buy girls about crossover cables. The average looking one will know what you're talking about.

Its just like real life, pretty girls don't have to know much.

RE: Disadvantage?
By michael2k on 7/9/2012 8:06:41 PM , Rating: 2
Heck, Apple has shown you can succeed with:
1) Have knowledgeable staff
2) Have helpful staff
3) Price products 10% to 30% higher

In other words, #1 and #2 are worth 10% to 30% of the actual product price. Of course it also helps that Apple's prices between it's stores and Amazon are nearly identical, too.

RE: Disadvantage?
By aliasfox on 7/10/2012 11:12:24 AM , Rating: 2
There are four shops that come to mind with your comment:

- Apple staff is at least reasonably knowledgeable about their own stuff, are helpful, and are the same price as online (+ tax, which is a fairly small price to pay)

- Microcenter and Frys are cheap enough - good if I need to pop in for a cable/router/flash drive etc that I don't want to wait to get shipped. The staff is reasonably helpful, but I don't know how knowledgeable they are on the whole.

- B&H Photo Video in NYC has online level pricing, and when you go into the store, among the most knowledgeable sales staff I've ever encountered - sure, it's sometimes dumbed down so that people are willing to listen, but they'll generally point you in the right direction. It doesn't hurt that they have a huge selection of equipment - and very little in the way of media (DVDs/Bluray/CDs).

If Best Buy could manage to be like Microcenter or Frys for their 'general' store and be like B&H or Apple for their Magnolia stores, I'd be more likely to use their stores as more than just glorified showrooms with blue-shirted stockboys.

Just get rid of geek squad completely!
By maven81 on 7/9/2012 6:05:47 PM , Rating: 2
I have no sympathy for these dishonest jokers. A girl I know walked in and said her laptop was acting up. (Virus). They told her her hard drive was about to fail and that they'd install a new one for $150. I check it out... aside from the virus there was nothing wrong with the drive and it's working fine 6 months later.

RE: Just get rid of geek squad completely!
By DiscoWade on 7/9/2012 7:14:56 PM , Rating: 2
The Geek Squad is not dishonest (any more than the general population at large), just not competent. If a person is good and knows how to work on computers, they will be working for a company that appreciates them or for themselves. Best Buy is unwilling to pay for competent computer repair people.

RE: Just get rid of geek squad completely!
By christojojo on 7/10/2012 5:22:44 AM , Rating: 2
Either way the result is bad service at high prices

By Kurz on 7/10/2012 10:17:47 AM , Rating: 2
When I worked there, I was one of the few people who did anything right. I didn't sell much, but I knew how to fix computers. They let me go because I wasn't pushing products out of my ass, when there was a cheaper more sensible solution.

By Dr of crap on 7/10/2012 8:52:10 AM , Rating: 2
And why the over priced services?? I mean really. If you want to GET MORE customers, cut the price of some of the more used services to get MORE people in the door.

I'd NEVER use Geek squad - it's WAY over priced. Had a bad virus a few years ago, couldn't boot up correctly, couldn't get it myself, shopped around and got a better deal than Geek squad.
Now since the local Best Buy is about 2 miles away, if the Geek Squad was COMPETITIVELY priced, I might have used them. But we all know its overpriced driving your customers away!! HINT, HINT!

Going DOWN
By TourGuide on 7/9/2012 4:39:53 PM , Rating: 2
I give them 2 years at most with the current direction they've pointed their 'turn around' plan in. The only way for them to make it is to be COST COMPETITIVE. It isn't a 'training' issue, it isn't 'imitating apple' retail models - it is COST that is KILLING YOUR BUSINESS IDIOTS!! Personally, I could care less if they go under. I only EVER go there if I have to have it NOW and I do so with the understanding that I'm going to pay much more than I should have to.

RE: Going DOWN
By n0ebert on 7/10/2012 2:27:41 AM , Rating: 2
It really reminds me of the years before Circuit City, for the most part, went under.

Part of their "turn around" plan was to remove all commission based sales and fire the top 6% of their sales staff to cut costs. Yeah, that went over well. Sales in stores plummeted due to a lack of any experienced sales staff since they rearranged other employees to fill in those spots who had no real incentive and/or experience when selling products.

RE: Going DOWN
By johnsmith9875 on 7/11/2012 9:57:25 AM , Rating: 2
Circuit City was way overpriced too. What was truly strange was they carried a lot of small accessories that tech geeks needed, but instead of proudly displaying them, they were off in a corner of the store in an area abandoned by sales staff.

I almost felt embarassed to buy a lone cooling fan, like I'm a guy in a sex shop trying to buy "granny butts" without getting noticed.

This is why I hate the news
By Talon75 on 7/11/2012 1:21:05 PM , Rating: 2
I usually come to Daily Tech to read about things that are interesting and not full of Band Wagon media sensationalist negativity. So this crap disappoints me.

"So if you want to save the planet, feel free to drive your Hummer. Just avoid the drive thru line at McDonalds." -- Michael Asher

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Most Popular ArticlesAre you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Leaked – Samsung S8 is a Dream and a Dream 2
September 25, 2016, 8:00 AM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
Snapchat’s New Sunglasses are a Spectacle – No Pun Intended
September 24, 2016, 9:02 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki