Why Best Buy Is Slashing An Immense Number Of Jobs
Adding to the emerging trend of companies laying off workers in big numbers, Best Buy has announced job cuts nationwide.
In a trend that is taking hold nationwide, companies big and small are laying off loads of workers. The trend is particularly prevalent among large retail corporations. Best Buy now joins a slew of others in slashing a good portion of its workforce.
The news that Best Buy has begun axing its workers comes just after the company announced its poor earnings in the second fiscal quarter. At this point, the electronics giant is being pretty tight-lipped about just how many casualties will come out of its job slashing spree. Best Buy’s comments relating to its job cuts mimic that of Verizon’s. Verizon recently announced it was laying off a significant portion of its corporate staff but chose not to divulge any metrics related to that announcement. When probed on the matter, a Best Buy spokesperson simply said that the company is constantly evaluating how to best continue to do business. “We’re always evaluating and evolving our teams to make sure we’re serving our customers,” said spokesperson Carly Charlson.
To curtail the news pertaining to the numbers of jobs it is slashing or will slash, Best Buy asserted that while jobs are being sacrificed in some areas, they are investing in others. The company said that it is focusing particularly on its healthcare and home services divisions. This is as it looks to continue to grow and evolve the business. Best Buy also noted that it would be ramping up seasonal hiring in its stores as the holiday season draws nearer. Conversely, though, publicly available figures suggest that overall Best Buy is downsizing the number of people it staffs at its retail locations.
Best Buy is far from the only one laying off portions of its workforce. Big players like Walmart, Shopify, 7-Eleven, Peloton, and even Amazon are axing staff in big numbers. Walmart, 7-Eleven, and Peloton all laid off hundreds of workers. At 7-Eleven, where around 800 corporate personnel were let go, it was reportedly handled so poorly that those who bore witness likened the occurrence to a “blood bath.” Peloton’s layoffs were similarly painful, as they laid off at least 1,000 individuals.
What’s most interesting about the layoffs at Best Buy as well as the other companies, is that it is happening at a time when unemployment remains at the historically low rate of 3.5%. Thus, as these companies ax workers due to suffering sales, lackluster profits, and recession fears, the job market as a whole still remains robust and thriving. When thinking about it, it really is counterintuitive. Although, many experts have attributed this mismatch to the odd behavior of consumers in general in the wake of a life-altering pandemic.
Overall, while the layoffs at Best Buy certainly are concerning the company was likely planning for this for a while. This is not the first storm that Best Buy has weathered. The company made an unlikely comeback less than a decade prior after nearly going out of business for good. Hence, logically the company is taking proactive steps to ensure that the empire they brought back from the brink continues to thrive.
