About 400 workers at the chain’s Richfield, Minn., head office will lose their jobs as the company looks to cut costs. The move its part of new CEO Hubert Joly’s effort to lower expenses by $725 million, the Los Angeles Times notes.
Staff cuts at its headquarters are expected to save Best Buy about $150 million. While the current layoffs only affect office staff and no stores are yet slated to close, the company said that additional workforce reductions are expected in the coming months.
Joly was recruited to lead the struggling big box electronics retailer’s turnaround back in August.
Best Buy’s founder Richard Schulze has expressed an interest in purchasing the company. However, recent media reports indicate that he has dropped plans for a takeover after failing to acquire the needed financing for a deal. Schulze has until the end of this week to make a bid for the company.
Shares of Best Buy slipped fractionally in Wednesday morning trading.