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Best Buy corporate axes 400 jobs, sales force safe for now

updated 07:58 pm EST, Wed February 27, 2013

Layoffs latest in 'renew blue' program to cut company costs

According to reports, Best Buy corporate slashed 400 jobs at its Richfield, MN headquarters on Wednesday. The reduction is part of the "Renew Blue" initiative, attempting to restore the company's sales and profit levels and fight off online competitors with lower expenses. The company warns of more cuts to come. Best Buy says this round of job cuts don't include any of its retail sales force or store closures. Last year, the company closed 50 stores in early phases of the operation.

The layoffs reduce the workforce at the headquarters of the retailer to less than 4,000, down from a high of 6,800 only six years ago. "There is nothing structurally wrong," CEO Hubert Joly told analysts. "For some reason, we took our eye off the ball and failed to focus on execution and innovation." The CEO has promised a reduction in annual costs of $725 million.

The company's earnings report for the vital holiday quarter is expected Friday, one day later than expected. The postponement is due to Thursday's deadline to announce his intentions for possibly purchasing the company, and take it private.




by MacNN Staff

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Comments

  1. AlohaMacintosh

    Fresh-Faced Recruit

    Joined: 03-23-12

    BYE BYE Best Buy

    umm...we REALLY DON'T need u anymore Bestbuy

  1. climacs

    Mac Enthusiast

    Joined: 09-06-01

    sure we do

    Where else can I try before I buy... online?

  1. Flying Meat

    Dedicated MacNNer

    Joined: 01-25-07

    Aloha

    Who's this "we" you reference? I like having a store I can go into and walk out with a product. It's no Apple Store, but that's not entirely a bad thing. There are alternative products you don't find at the Apple Store, and even if the staff and management don't provide the best information, or the best non-PC related products, I'm okay with that.
    Not exactly a glowing endorsement, I know. I do like having the alternative physical stores to shop at though.

  1. psdenno

    Fresh-Faced Recruit

    Joined: 05-06-03

    If you......

    still have that Best Buy gift card you got for Christmas, now would be a good time to use it.

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