NEW YORK – The overwhelmed electronics retailer, Best Buy, plans to cut about 2,400 jobs or 1.4% of its workforce. The cut will include 600 technicians in the area of installation and repair services. This news was confirmed by the company’s spokesman last Friday.
“The latest cuts are in addition to those announced last March when Best Buy closed down 50 of their stores” said spokesman, Bruce Hight.
The dismissal of technicians represents about 3% of the 2,400 jobs at stake. The other 1,800 job cuts will affect the company’s stores.
The largest electronics chain in the world has seen sales fall for seven of the last eight quarters in stores that opened the year before, a key measure for retailers.
Best Buy has lost a lot business because of the tendency of consumers to use their stores to try products but buy them cheaper elsewhere, usually through online stores like Amazon.com.
The interim CEO, Mike Mikan, told shareholders last June that he was working on a way to make the company “more relevant, more intelligent, smarter” and said he would unveil the plan by the end of summer.
Mikan took over as CEO after Brian Dunn had to leave the company following an internal investigation proved that he was involved in an improper relationship with an employee.
The investigation also determined that the founder Richard Schulze, did not tell the board about the charges involving Dunn.
Schulze was sitting as president after investigation but abruptly resigned from the board to explore options for its 20.1% stake in the company.
Sources said Schulze is working with banks like Credit Suisse to explore the potential acquisition of the company.
Best Buy shares closed Friday at $21.59, down 15 cents, in the New York Stock Exchange.