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.
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RE: From a business side of things
7/9/2012 6:19:40 PM
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.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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