Electronics retailer Best Buy Co., Inc. may cut its 90,000 strong workforce in an effort to save money, according to news reports.
A spokesperson for the Fortune 100 company said a recent memo from the company’s president, Brian Dunn, asked managers to find ways to tighten their purses, including evaluating the possibility of layoffs.
The Star Tribune reported that Best Buy wants to save $300 million in its current fiscal year.
The cost-cutting comes at a time when the retailer, which has 940 stores across the U.S. and Canada, posted strong year-over-year gains in its fourth quarter report yesterday, which saw revenues grow by 15% to $10.7 billion.
“I’m very proud of our employees and the outstanding results they delivered for the quarter and the year,” Brad Anderson, vice chairman and CEO of Best Buy said yesterday in a statement. “I’d like to thank our entire team for their unwavering commitment to meeting customers’ needs. As a result of their efforts, we’re growing our business even as we refine our model for the future.”
The Richfield, MN-based retailer plans to add its Magnolia Home Theater store-within-a-store experience to approximately 200 stores and elements of Best Buy For Business to at least 120 stores. The company also plans to expand its services business.
“We are energized by our outstanding results in fiscal 2006,” said Dunn in a statement. “For the coming year, we’re putting resources on the key drivers of both near-term and long-term growth, and we’re focused on optimizing our customer-centric operating model across the company. This work will require changes in our stores, in our field leadership and within the corporate campus— we’re committed to making those changes.”
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