Best Buy stores makeover under way, to cut 2,400 jobs in effort to save money

By on Jul 7, 2012 in Business, United States Comments

Updated: August 20, 2012 2:10 p.m.

Read Hubert Joly named as new Best Buy CEO, founder Richard Schulze declines offers on diligence deal

A so-called Best Buy stores makeover is reportedly under way and will affect 2,400 jobs, as part of its strategy to save money, a month after its founder Richard Schulze resigned as the company’s chairman and board director.



Best Buy store in Richfield
Image Credit: Justin Sullivan/Getty Images

According to Wall Street Journal on Thursday, July 5, 2012, Best Buy will be testing a prototype store near its headquarters in Richfield, Minnesota; where there will be a “Solution Central” table to be staffed by its Geek Squad employees that seemed to be similar with that of Apple features such as its Genius Bar.

As noted in the report, the chain’s new format is dubbed as Best Buy 2.0 by its interim CEO Mike Mikan, which the strategy will focus on ensuring that customers can speak with employees who assist them, instead of simply displaying as many gadgets as possible.

However, Best Buy said on Friday that it will be cutting down 600 employees of its Geek Squad technical support division and another 1,800 store workers, which makes a total of 2,400, or around 1.4% of the company’s total staff of 167,000, as it seeks to restructure operations and improvement results.

The affected employees were reportedly informed this week, and that these changes were previously announced as part of the leadership team’s ongoing turnaround plan, with Best Buy not yet revealing the total job cuts for this year but noted that around a $230-million cost reduction will be made this year.

Back in March this year, Best Buy announced that it will be closing down 50 US big-stores and will replace them with 100 small-format, stand-alone stores, which will affect around 400 corporate and support jobs, with the company targeting an $800-million cost deduction by fiscal year 2015.



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