According to World Street Journal, Best Buy will be trimming off its workforce due to the on-going economic breakdown and a sharp decline in sales. However, the Minneapolis-based electronic retailer has not disclosed the exact number of layoffs yet but has announced how many staff have already been furloughed.
Keegan Shoutz, the spokesperson from Best Buy said that the company never comments on personal matters. Keegan Shoutz who also plays the role of Public Relations for Best Buy also replied that “There has been a massive change in the shopping behavior of the customers. Our customers are now more dependent on digital platforms and less on physical stores”.
The company has furloughed nearly 51,000 employees working on hourly wages as well as part-time staff who were appointed in different stores across the USA. The furloughing took place during the pandemic in 2020 when the country went into lockdown.
From August 2020 Best Buy started bringing back staff from furlough and increased their minimum wage to $15 per hour in many US states.
In a recent statement given by Corie Barry, CEO of Best Buy, he claimed the company achieved 23% growth in sales during 2020 as it adopted different operational models. These included flexible store operation, expansion of supply chain and shifting to a digital platform amongst other things. This approach lead to acceptance from their customers and increased the demand for goods. The CEO added that the company paid a bonus to the employees working on the field during the pandemic and gave generous incentives. Also, the company resumed work with all employees across every location. A spokesperson from Best Buy in a statement acknowledged the importance of technology in people’s life and business’.