Best Buy Confirms 2,400 Job Losses As Cost Reductions Continue
Best Buy will cut 600 of those jobs from Geek Squad (which currently employs around 20,000 people), with the other 1,800 coming from "store staff." It's a small fraction of its 167,000 employees, but it'll still pinch quite a number of communities. Best Buy said in a statement: "These changes were previously announced as part of the leadership team’s ongoing turnaround plan," but seeing it come to fruition still stings. All told, Best Buy is hoping to hit $800 million in cost reductions by fiscal 2015, so it still has a ways to go.
Naturally, many analysts cite increased competition from the likes of Amazon as a primary reason for Best Buy's hurting, but we're sure heightened fuel / shipping charges and cutthroat margins don't help either.