Uh-oh. Even though Big Blue squeaked out a profit last quarter and beat Wall Street’s expectations, the retailer is planning its biggest layoff since July 2012. About 2,000 managers will lose their job, but no store closures are planned.
According to the New York Post, the exact number of cuts have not been determined yet but it could reach 2,000 managers
The company announced its 2014 fourth quarter results today. Released today, it shows that Best Buy managed a profit even though it saw “slightly negative” sales in the first half as sales fell to $14.47b from $14.92b. This beat Wall Street’s expectations, causing the stock price to pop this morning. It is currently trading up 6% on the day.
Just yesterday Sony announced that it was closing the majority of its US-based Sony stores. Retail is hard and until Best Buy and others figure out how to combat the Internet, more cuts and closures should be expected. Maybe stores within stores will help.