What Best Buy’s layoffs mean for the company



By Thomas Lee, Star Tribune

Best Buy Co. said Tuesday that it has laid off 400 employees at its corporate headquarters in Richfield, the first major salvo in CEO Hubert Joly’s campaign to transform the lumbering $50 billion giant into a more nimble retailer equally at home in malls and cyberspace.

Joly’s effort comes amid a crucial turning point in the company’s 47-year history as founder Richard Schulze faces a Thursday deadline to make an offer to buy the company. Schulze’s decision will have profound consequences on the future of Best Buy, which is only starting to revive itself after losing much ground over the past few years to online retailers such as Amazon.”

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  • carlsbadmac

    Best Buy has continually failed on many fronts: Not following their corporate-stated guidelines at the local level (which could be there as lip-service only), alienation of its dwindling client base through poor treatment of its customers in-store, online and on their toll-free telephone lines and not carrying a diverse-enough line to appeal to the impulse buyers.

    At this point, their failure is inevitable. Why? Because the well has been poisoned, the name is mud among those (like myself) who have to buy computers, HDTVs, networking and video/camera gear as part of our business. A recent failure to price match their own website for me in-store cost them $2,200 in sales that week and another $9,000 in a proposal I have submitted. That’s just one guy in Southern California, can you imagine what’s going on chain-wide!!! Plus, Fry’s is willing to offer discounting with a smile when I buy four 50″ LCDs at a time. Try that with a Best Buy manager and you get stammering and a failure to commit on the spot. Due dilligence bids are all they are good for, and that’s a joke too.

    Good (best) buy-bye…