Best Buy will lay off ‘hundreds’ of employees in more than 900 stores – with the first staff specializing in the sale of computers and smartphones
- Best Buy is cutting “hundreds” of jobs in stores across the country
- The change is part of a shift from operating physical stores to online
- Those involved will be ‘consultants’ who provide clients with specialist advice
Best Buy is cutting staff in hundreds of stores in the US as the electronics retailer wants to cut costs and shift its focus to e-commerce.
Workers who specialize in selling complex products in stores, known as “consultants,” were told last week they would lose their jobs, the agency said. Wall Street Journal.
The layoff will affect employment in the more than 900 stores that Best Buy operates in the US. Those made redundant were invited to reapply for job openings within the company or to be fired.
“As we shared last month, we are evolving our stores and the experiences we provide to better reflect changes in customer shopping behavior, as well as how we organize our teams,” said Best Buy.
Best Buy is cutting staff at hundreds of U.S. stores as the electronics retailer tries to cut costs and shift its focus to online sales
Those affected will be employees who specialize in selling complex products in stores, known as “consultants.”
The job cuts are part of a broader trend that has seen the retailer cut its workforce over the past two years and comes months after about 700 workers were laid off in Canada in January.
Most of the cuts are in stores, and a reflection of reduced demand for electronic devices compared to during the pandemic, when sales increased, the Journal reported.
As of January 2023, Best Buy had more than 90,000 employees in the United States and Canada, including approximately 58 percent full-time employees, 32 percent part-time employees, and 10 percent seasonal employees.
“Over the past three years, we’ve optimized our store staffing model to reflect changes in customer shopping behavior and drive investment in higher wages,” Best Buy CEO Corie Barry said during an earnings call last month.
Demand for electronic devices was high during the pandemic, but that demand has since declined
An employee shows customers different options for flat screen televisions at a Best Buy in Illinois
Expecting the tough times to continue, she said: “Macroeconomic headwinds are likely to result in continued volatility and we are preparing for another bad year for the industry.”
Online sales play an increasingly important role in its business operations. Barry said about a third of Best Buy’s sales in the US came from the Internet, compared to 19 percent two years earlier.
Sales over the phone, chat or virtually have also grown, she said.
Earnings at Best Buy reflect the drop in demand. It posted net income of $277 million for the three months ended October 29 last year, down from $499 million in the same period in 2021.