02.19.2009 — As expected, Best Buy laid off 250 employees at its headquarters today. However, it also announced the creation of 210 new positions at the Richfield, Minn. home office for a net loss of 40 jobs.
The apparent contradiction reflects a shift in focus. Instead of working toward opening new stores, Best Buy says it is now looking at enhancing existing stores and improving online sales, according to the Minneapolis-St. Paul Business Journal.
Many of the eliminated positions were related to new-store development and many of the new positions are designed to sync with the new focus, according to Best Buy spokesperson Susan Busch.
The 250 terminated employees will be able to apply for the new positions, Busch adds, although they are able to work for another 30 days.
"We will be providing more information to our employees about the new store operating model in the weeks ahead," Busch says. "The store changes are less about staff impacts and more about shifting labor dollars to where the customers are."
Today's layoffs come on the heals of 500 workers voluntarily being laid off in January. The voluntary layoffs were effective Feb. 12 and resulted in a 13 percent reduction in the company's workforce.
Best Buy, the No. 1 electronics retailer in the U.S., recently saw its top competition, Circuit City, go out of business.
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