Best Buy will layoff 'hundreds' of store workers that offer customers specialist advice

Best Buy is cutting workers in hundreds of stores across the US as the electronics retailer looks to cut costs and shift focus towards e-commerce.

Last week workers who specialize in selling complex products in stores, sometimes called 'consultants', were told they would lose their job, according to the Wall Street Journal.

The layoff will affect jobs across the more than 900 stores Best Buy operates in the US. Those laid off were invited to reapply for open positions within the company or receive severance.

'As we shared last month, we're evolving our stores and the experiences we offer to better reflect the changes in customer shopping behavior, as well as how we organize our teams,' Best Buy said.

Best Buy is cutting workers in hundreds of stores across the US as the electronics retailer looks to cut costs and shift focus toward online sales

Those affected will be workers that specialize in selling complex products in stores, sometimes called 'consultants'

The job cuts are part of a wider trend that has seen the retailer shrinking its workforce over the last two years and comes months after in January it laid off around 700 employees in Canada. 

Most of the cuts are in stores, and a reflection of reduced demand for electronic appliances as compared with during the pandemic when sales were up, the Journal reported.

As of January 2023, Best Buy had more than 90,000 employees in the United States and Canada, including about 58 percent full-time employees, 32 percent part-time workers and 10 percent seasonal staff. 

'Over the past three years we have been optimizing our store staffing model to reflect the changes in customer shopping behavior and to fuel investments in higher wages,' said Best Buy Chief Executive Corie Barry during an earnings call last month.

During the pandemic demand for electronic devices was high but that demand has since dwindled

An employee shows customers various flat screen television options at a Best Buy in Illinois

She expected the hard times to persist, saying: 'Macroeconomic headwinds will likely result in continued volatility and we are preparing for another down year for the industry.'

Online sales are playing an increasingly large role in its business. Barry said that about a third of Best Buy's US sales came from its online as compared with 19 percent two years prior.

Sales made by phone, through chat or virtually have also grown, she said. 

Profits at Best Buy reflect the drop in demand. It recorded net earnings of $277 million for the three months ending October 29 last year, down from $499 million during the same period a in 2021.