As per The Star Tribune in Minnesota, Best Buy has implemented significant workforce reductions, resulting in layoffs of various employees, including Geek Squad experts.
The recent layoffs at the Richfield, Minnesota-based company impacted home-theater maintenance personnel and mobile assistance technicians, as detailed by the publication.
These job cuts are part of a larger “restructuring initiative” unveiled by Best Buy CEO Corie Barry during an earnings call in February. The objective of this plan, which involved staff reductions, was to “stabilize the business following a period of declining sales,” as highlighted by The Star Tribune.
Barry indicated that the “layoffs would mainly take place in the first quarter of 2024 and could affect different departments within the company.”
Maintaining the optimal deployment of “field workforce resources” has consistently been a key focus for Best Buy, with the company striving to “ensure the delivery of exceptional customer service regardless of the shopping channel,” Barry emphasized during the call.
Furthermore, the company plans to downsize operations in areas “where a decrease in demand is anticipated compared to previous projections,” according to the newspaper.
Best Buy has not yet responded to inquiries from USA TODAY.
Key Points:
Best Buy has assured severance packages for those affected by the layoffs.
The exact number of employees laid off since the announcement of the “restructuring plan” remains undisclosed, including the specific impact of the recent wave, which the company has opted not to disclose.
Best Buy informed The Star Tribune that “affected employees who are eligible will receive severance, with some being given the opportunity to transfer or reapply for positions within the organization.”
Acknowledging the constantly evolving consumer electronics industry with increasing innovation and shifting customer expectations, a statement obtained by The Star Tribune emphasized the necessity for adjustments.
During the February earnings call, the company pledged to ensure equitable distribution of resources, strategically allocating them to enhance operational efficiency and fortify its position for the future.
Best Buy Unveils AI Venture
In light of the layoffs, Best Buy introduced a new artificial intelligence (AI) venture, underscoring its commitment to future readiness. Developed in partnership with Google Cloud and Accenture, this venture leverages “generative AI to offer customers more personalized, top-tier technical support experiences.”
These AI-driven virtual assistants will aid Best Buy customers in resolving product issues, adjusting delivery specifics, and managing software, among other tasks, as per the press release.
The “self-service support option” will be accessible online, through the Best Buy app, or via phone starting in the summer of 2024.
“These novel AI-powered capabilities further underscore our dedication to providing superior, personalized customer experiences,” noted Brian Tilzer, Best Buy’s chief digital and technology officer, in a statement to The Star Tribune.
Geek Squad Overhaul in Progress, Part of Restructuring Effort
Several strategies are in place to realign the company, including efforts to streamline Geek Squad operations, according to The Star Tribune.
Barry mentioned that Geek Squad will continue to evolve as a service, transitioning to a business-to-business model.
Geek Squad employees are set to shift to Best Buy Health, a segment specializing in the sale and delivery of medical technology for in-home care, The Star Tribune disclosed.
