Best Buy (NYSE:BBY) to Cut 5,000 Jobs and Close More Stores

Image Credit Best Buy


With online ordering increasing, Best Buy (BBY) expects 40% of its sales to come from online purchases this year. That’s an increase of 19% compared to two years ago.  Due to customers preferences to shop online, Best buy has had to manage the shift and close stores and lay off 5,000 workers who are mostly full-time workers.

It has slashed its full-time labor force, but is planning to hire 2,000 new part-time positions.

Competition is also fierce for the electronics segment with Walmart, Amazon and now Sears offering competitive discounts and fast shipping.

Best Buy has also missed its holiday-quarter sales target and gives soft guidance.

Best Buy earned an adjusted $3.48 a share on sales of $16.94 billion in its fiscal fourth quarter ended Jan. 30. Analysts  were expecting earnings of $3.42 a share on sales of $17.15 billion. On a year-over-year basis, Best Buy earnings rose 20% while sales climbed 11%.

However, Best Buy making sales in electronics sales due to the closing of all the Fry’s stores physical locations and its website.

Best Buy CFO Matt Bilunas said in an investor call  “We anticipate more promotional pressure than we experienced this past year as inventory becomes more available and competition likely increases,” he said on a call with investors and analysts.

Follow us on Google news for more updates and News


This content is being provided to you for informational purposes only. The content has been prepared by third parties not affiliated with CWEB Inc, a business. This content and any information contained therein, does not constitute a recommendation by CWEB to buy, sell or hold any security, financial product or instrument referenced in the content. This information neither is, nor should be construed as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. CWEB Inc. does not offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy, and you shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.

Unless stated otherwise, the web content provided by the CWEB family of companies is for educational purposes only. The information and tools provided neither are, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. or its affiliates. Unless stated otherwise, no information presented constitutes a recommendation by CWEB Inc. or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy.

Full Disclaimer

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.