updated 07:58 pm EST, Wed February 27, 2013
Layoffs latest in 'renew blue' program to cut company costs
According to reports, Best Buy corporate slashed 400 jobs at its Richfield, MN headquarters on Wednesday. The reduction is part of the "Renew Blue" initiative, attempting to restore the company's sales and profit levels and fight off online competitors with lower expenses. The company warns of more cuts to come. Best Buy says this round of job cuts don't include any of its retail sales force or store closures. Last year, the company closed 50 stores in early phases of the operation.
The layoffs reduce the workforce at the headquarters of the retailer to less than 4,000, down from a high of 6,800 only six years ago. "There is nothing structurally wrong," CEO Hubert Joly told analysts. "For some reason, we took our eye off the ball and failed to focus on execution and innovation." The CEO has promised a reduction in annual costs of $725 million.
The company's earnings report for the vital holiday quarter is expected Friday, one day later than expected. The postponement is due to Thursday's deadline to announce his intentions for possibly purchasing the company, and take it private.