The latest round of Best Buy layoffs comes after the retailer faced a difficult holiday shopping season during which sales declined 2.6%. The current round of Best Buy layoffs is expected to involve around 2,000 supervisors and managers. Last week, 500 field managers received word of the new Best Buy layoffs, which will affect both stores and business offices. Individual store management teams are expected to be advised of the Best Buy layoffs in the coming days.
New Best Buy layoffs are part of CEO Hubert Joly’s bid to reduce costs at the chain, which is struggling to compete with online retailers like Amazon (AMZN). By aiming the new Best Buy layoffs at mid-level managers, Joly is apparently attempting to trim at the management level so as not to harm customer service by reducing store sales and service staffs.
BBY stock surged more than 6% in pre-market trading on Thursday, driven up by higher-than expected fourth-quarter profits. Best Buy posted adjusted EPS of $1.24 for the quarter, easily beating the $1.01 that analysts had forecast, despite lower sales, FOX Business notes.