Quick Note: Best Buy Axes 2,400 Jobs
July 9, 2012 4:00 PM
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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.
This article is over a month old, voting and posting comments is disabled
7/9/2012 5:22:43 PM
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.
7/9/2012 7:13:02 PM
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.
7/9/2012 9:25:42 PM
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.
"We are going to continue to work with them to make sure they understand the reality of the Internet. A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis
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