Best Buy to Cut Workforce by 2,400

Big box electronics retailer Best Buy (NYSE:BBY) announced late Friday that it will trim its payroll by 2,400 positions nationwide, roughly 1.4% of its total workforce.

Included in that number are 600 positions at its Geek Squad service and installation unit, Reuters noted.

Best Buys shares slipped more than 1% in early Monday trading.

The new staff reductions come on top of plans, revealed in March, to shutter 50 stores. Prior to the latest cuts, Best Buy employed about 167,000.

The company has been struggling to find a new direction after a string of quarterly declines in same-store sales.

In recent years the retailer has been stung by consumers who visit its stores to look at products, but then purchase them online from discount vendors like Amazon (NASDAQ:AMZN).

The company has also suffered from a corporate leadership crisis in recent months. In April, CEO Brian Dunn was forced to resign after it emerged that he had an inappropriate relationship with a female employee.

In May, chairman and founded Richard Schulze stepped down in light of revelations that he knew of Dunn’s inappropriate relationship but failed to inform the board. Rumors are swirling that Schulze, the company’s largest shareholder, is working with Credit Suisse (NYSE:CS) to launch a possible takeover bid.


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