Best Buy lays off 5,000 amid online sales surge
Chain to replace the full-time employees with 2,000 part-timers
Best Buy said Thursday that it laid off 5,000 full-time store workers earlier this month, even as the company’s sales soared during the pandemic as homebound people bought laptops, TVS and other gadgets.
The company said it cut the jobs because more shoppers are choosing to buy online instead of coming inside its stores. Best Buy said it will replace the 5,000 full-time employees with 2,000 parttime workers.
Best Buy’s workforce has shrunk in the last year after having to furlough workers when it closed stores during the pandemic. It currently has more than 100,000 workers, down by 21,000, or 17 percent, from the year before.
The company is retraining workers to help with online orders. And more space in stores is being used to ship
orders or to get them ready for curbside pickup, where shoppers buy online and fetch their orders in the parking lot.
Online sales soared 89 percent from November to the end of January, compared with the same months a year ago, Best Buy said Thursday.
Revenue during that quarter grew 11 percent to $16.9 billion. Its profit rose nearly 10 percent to $816 million. Its adjusted earnings per share came to
$3.48 per share, beating Wall Street expectations.
Sales online and at established stores, a key metric of a retailer’s health, rose 12.6 percent in the last quarter and increased 9.7 percent last year. It expects that number to rise 20 percent in the current quarter, but growth is expected to slow this year to fall 2 percent or rise as much as 1 percent.
Best Buy shares fell $10.52 to $102.94 on Thursday.