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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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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.


"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation














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