About 600 Geek Squad tech support jobs will be eliminated along with 1,800 store positions by Aug. 1, said the person, who declined to be identified because the plans are private. Those eliminated will qualify for job-placement assistance and severance packages, said the person.
The job cuts come as Best Buy struggles to compete with the likes of Amazon.com Inc., Apple Inc. (AAPL) and Wal-Mart Stores Inc. (WMT) In March, Best Buy reported a $1.7 billion fourth-quarter loss and said it would close 50 big-box stores.
Best Buy is trying to thwart the so-called showrooming phenomenon -- when customers try out gadgets in a store and then buy them online -- by adopting Apple-style minimalism rather than its traditional big-box approach.
Best Buy also is remaking the Geek Squad. Technicians will staff in-store booths to fix simple problems -- think Genius Bar -- instead of providing service in customers’ homes.
The Geek Squad job cuts will affect only technicians who provide in-home service, said the person.
Yeah, I could have told you those mobile Geek Squad techs were toast. I'm honestly surprised that Best Buy employed so many of them. Here's a hint, guys. Pretty soon there won't be a Geek Squad, and pretty soon there won't be a Best Buy. It's just how the business model goes, guys. Gotta make those profits for shareholders by selling goods manufactured for a dollar an hour, we can't pay people $9.50 an hour to sell them.
After all, the new boss did promise change! We can afford to pay him several million, but that of course means 2,400 have to go. So sorry.
Hope you didn't have a career path or anything guys. Maybe you should be the CEO next time.
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