To deal with “reduced business demand,” Best Buy has drastically reduced its workforce and laid off numerous employees, including Geek Squad field agents, current and former employees said in a statement from the Minnesota-based company. told the Star Tribune.
The Litchfield, Minn.-based company's recent wave of layoffs also affected home theater repair technicians and phone support specialists, the paper said.
The layoffs are part of a larger “restructuring plan” that Best Buy CEO Cory Barry announced during an earnings call in February. The Star Tribune reported that the plan, which also includes job cuts, was proposed to “stabilize the company after months of declining sales.”
“The reductions will occur primarily in the first half of 2024 and will be company-wide,” Barry said on a conference call.
Ensuring that “field workforce resources” are properly balanced is a top priority for Best Buy, which “wants to ensure customers have the best experience wherever they want to shop.” Barry said on a conference call.
He also added that the company will cut some parts of its business “where we expect sales to be lower than we anticipated several years ago,” the newspaper reported.
Best Buy did not respond to USA TODAY's request for comment.
Here's what we know:
Best Buy says fired workers will receive severance pay
It was not immediately clear how many Best Buy employees have been laid off since the “restructuring plan” was announced, and how many employees were affected by the latest wave, as the company has declined to disclose publicly. It's not clear.
They told the Star Tribune that “eligible employees affected will receive severance benefits and some will have the opportunity to transfer or reapply to the company.”
“We know better than anyone that the consumer electronics industry is constantly changing with new technology, further innovation, and evolving customer expectations. That means we need to change, too,” the statement, obtained by the Star Tribune, said. That means there is.”
The company intends to follow the steps outlined in its February earnings call, saying it will “ensure that resources are balanced and aligned to the right strategic areas to increase the efficiency of the business and best position it for the future.” We are making sure that they are redirected,” he wrote. ”
Best Buy announces AI venture
Best Buy is serious about being in the “best position” for the future, announcing a new artificial intelligence venture following reports of layoffs. The venture was founded in collaboration with Google Cloud and Accenture to “use generative AI to deliver a more personalized, best-in-class tech support experience for our customers.”
The AI-powered virtual assistant is set up to help Best Buy customers troubleshoot product issues, change shipping details, manage software and more, according to a news release.
“Self-service support options” will be available online, in the Best Buy app, or by phone starting in summer 2024.
“These new generation AI-powered features further strengthen our commitment to delivering better, more personalized experiences for our customers by unlocking the power of people,” said Best Buy Chief Digital Officer. Brian Tilzer, director of analytics and technology, told the Star Tribune.
Geek Squad revamp underway as part of rebuilding plan
According to the Star Tribune, “several initiatives” are planned to get the company back on track, one of which is to make Geek Squad “more efficient.”
Barry said the company will continue to “build Geek Squad as a service operated as a business-to-business model.”
The Geek Squad employees will eventually be hired by Best Buy Health, which sells and provides medical technology to help home health patients, the Star Tribune reported.