Best Buy Hires 51,000 Store Employees in the United States

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(Reuters) – Best Buy Co Inc. said Wednesday that it will lay off approximately 51,000 hourly employees in US stores and that sales have dropped about 5% in the first two months of the current quarter, the retailer having closed its stores due to coronavirus. pandemic.

FILE PHOTO: The company logo for Best Buy is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, the United States, on August 22, 2018. REUTERS / Brendan McDermid

The company said that starting next week, some company employees will also participate in weeks of work and voluntary voluntary leave, while its management and board of directors will benefit from a reduction in wages. .

However, Best Buy would retain approximately 82% of its full-time employees in stores and in the field.

The company said sales increased by about 25% during an 8-day period ended March 20, one day before the company announced its decision to switch to a curbside delivery model. , while people bought homework equipment, gaming related products as well as the products needed to freeze food.

Best Buy added that online domestic sales had jumped more than 250% from the previous year, with half of the sales coming from customers who picked up their products from stores.

However, store closings and declining attendance weighed on demand and sales fell 30% from March 21 to April 11, Best Buy said.

“The situation remains very fluid and there is still a great deal of uncertainty, particularly regarding the depth and duration of store closings and consumer confidence over time,” said Corie Barry, chief executive officer.

The company has already withdrawn all of its financial forecasts for the 2021 fiscal year and withdrawn the total amount of its $ 1.25 billion revolving credit facility.

According to an annual report, Best Buy had nearly 125,000 full-time, part-time and seasonal employees in the United States, Canada and Mexico at the end of fiscal year 2020.

The company’s shares, which will report its results for the first quarter ending May 2 at the end of next month, fell about 6% Wednesday morning.

Aishwarya Venugopal’s reports to Bengaluru; Editing by Vinay Dwivedi

Our standards:Principles of the Thomson Reuters Trust.

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