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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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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.

"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer

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