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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 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.

"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins

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