Brian Dunn has announced that he is resigning from the position of CEO of Best Buy and is also stepping down from the board of directors. “I have enjoyed every one of my 28 years with this company, and I leave it today in position for a strong future. I am proud of my fellow employees and I wish them the best,” said Dunn in a statement. Mike Mikan has been named as the interim CEO. He has been a Best Buy director since April 2008. A search committee has been formed to find the next permanent CEO.
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.
