After a significant fourth quarter loss, it’s no surprise that Best Buy has been downsizing.
However, it IS surprising that they have been downsizing so much. The company announced Friday their plan to axe over 2400 jobs as part of their turnaround plan. Such includes the removal of dozens of Best Buy stores around the country and around the globe, as well as the implementation of more local Best Buy Express setups worldwide. In an interview conducted by Market Watch, from which this story is sourced from, Best Buy declined to give out the total number of jobs they cut over the course of this year. However, one could speculate that such a number is rather significant in size. Best Buy also plans to reduce it’s outside consulting services, as well as seek out better negotiations with vendors, as a plan to reduce costs for the big box vendor. Despite decisions to cut cost however, the company plans to remodel many of it’s stores in order to better connect services and products. The plan is to reduce square footage in stores, which will eventually help to also cut costs. This plan is also related to Best Buy’s perpetual goal of becoming more user friendly- mirroring that of an Apple store setup. The company’s stocks fell 0.7% on Friday, which contributes to the overall 33% drop in the past year.
Let’s hope that they get it right this time.
Source Market Watch