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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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By Dr of crap on 7/10/2012 8:52:10 AM , Rating: 2
And why the over priced services?? I mean really. If you want to GET MORE customers, cut the price of some of the more used services to get MORE people in the door.

I'd NEVER use Geek squad - it's WAY over priced. Had a bad virus a few years ago, couldn't boot up correctly, couldn't get it myself, shopped around and got a better deal than Geek squad.
Now since the local Best Buy is about 2 miles away, if the Geek Squad was COMPETITIVELY priced, I might have used them. But we all know its overpriced driving your customers away!! HINT, HINT!


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