Best Buy implements new round of layoffs and business restructuring

It is learned that according to foreign media reports, the US company Best Buy carried out a new round of layoffs and business restructuring last week.

The consumer electronics and appliance retailer laid off some salespeople and cut wages for others, according to employees involved in the layoffs. The main target appears to be door-to-door sales positions known as designers, who go to customers' homes to help them find products that fit their spaces. Designers who were not laid off were moved to more in-store work. In addition, the salary scale of existing consultant positions was adjusted.

In response, Best Buy confirmed the layoffs in an email, but did not specify the number of employees affected or comment on the changes in the salary structure. Best Buy spokesman Ryan Furlong said: "Many of our team members have been transferred to new areas or positions that customers need most. Some Best Buy employees will be transformed into new 'senior designer positions.'"

Consultants, who previously earned commissions on in-store sales, will now be paid based on their average sales from the previous year. Consultants refer some clients to designers, who travel to clients' homes to help them choose smart home devices that fit their space. Designers make a base salary of about $90,840, plus commissions. Their average income ranges from $136,000 to $181,000. Those who are not laid off will now receive the minimum wage, plus an adjusted commission rate, but that won't make up for the drop in wages.

Despite having just over 1,000 stores, the actual number of designers laid off is likely relatively low. Best Buy still plans to exit physical media sales like DVDs, launch a Samsung authorized repair program, and begin using generative AI for customer troubleshooting and order support.

Best Buy had more than 85,000 employees as of early February, down from nearly 125,000 employees at the beginning of 2020 and more than 90,000 employees by early 2023, according to company financial documents.

In addition, Best Buy CEO Corie Barry told investors in February to expect layoffs this year, and he reiterated that during the company's first-quarter earnings call in May, saying many of the steps Best Buy is taking to right-size its business will be implemented throughout the year.

As ChannelNews previously reported, Best Buy's stock price rose more than 10% in late May, which was attributed to its profit exceeding expectations due to growing demand for services and laptops. The retailer pursued profits rather than revenues last quarter, and although revenue fell 6.8%, profits increased 23.4%.

Author✎ Summer/
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