Best Buy Announces Layoffs of Store Workers Across the United States Due to Shift in Shopping Behavior
Layoffs
April 18, 2023
Best Buy, the electronics retail giant, has announced that it is laying off an undisclosed number of employees from its stores across the United States. The move comes as the company experiences a decline in sales of consumer electronics and a shift in shopping behavior towards online purchases. The layoffs are part of Best Buy's plan to evolve its stores and customer experiences to reflect these changes.
While Best Buy has not provided specific numbers regarding the layoffs, it has stated that it is shifting its priorities towards adding thousands of customer-facing employees and investing in growing areas, such as its Totaltech membership program and its health business. The company says it wants to ensure that it continues to provide its expertise, products, and services in the best way possible.
Best Buy's layoffs will reduce its workforce of more than 90,000 employees in the U.S. and Canada. The company previously had nearly 125,000 workers in early 2020, according to company financial filings. The job cuts come at a time when the U.S. job market remains strong, but retailers are facing challenges due to the ongoing pandemic.
Retailers, including Best Buy, have seen a shift in shopping behavior as consumers increasingly purchase goods online. Digital sales have become a more significant part of Best Buy's business, with a third of its U.S. sales coming from its online business in the fiscal year that ended in late January. The company's CEO, Corie Barry, has also noted that more than 40% of online sales are picked up in stores, highlighting the importance of physical stores in the company's overall strategy.
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