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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

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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?

"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home

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