Thursday, March 29, 2012

Best Buy To Cut 400 Jobs, Close 50 Stores Nationwide

The move to cut 400 jobs and close 50 stores nationwide was announced alongside Best Buy's Q4 earnings report, which includes action items aimed to trim $800 million in costs by 2015. The closings will no-doubt come along with staffer reductions, some of whom could be transferred to one of 100 Best Buy Mobile "small format stand-alone stores" set to launch next year. While an unfortunate move for some customers and employees, it does show some foresight on behalf of BBY management, who likely recognize a continuing shift to online purchasing, and a greater emphasis on mobile devices, which require significantly smaller showrooms, cost less to ship and could offer greater margins to boot.

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