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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: Disadvantage?
By StevoLincolnite on 7/9/2012 5:22:43 PM , Rating: 2
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.


RE: Disadvantage?
By DiscoWade on 7/9/2012 7:13:02 PM , Rating: 2
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.


RE: Disadvantage?
By christojojo on 7/9/2012 9:25:42 PM , Rating: 2
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.


"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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