Best Buy has confirmed it has made job cuts just weeks after warning of a dip in sales because of weaker demand for electronics combined with inflationary pressure.
The Wall Street Journal reported on Friday that the Richfield-based retailer had cut "hundreds" of jobs in stores across the country this past week in an effort to boost its profits, with some of those impacted being those who help people buy home entertainment layouts.
Best Buy's most recent results, for the 1st Quarter, showed that net income had dipped compared to 2021, but it still made profits of $349 million.
The company did not refute the WSJ report, saying in a statement to Bring Me The News that it is "always evaluating and evolving our teams to make sure we’re serving our customers."
"With an ever-changing macroeconomic environment, including customers shopping more digitally than ever, we have made adjustments to our teams that include eliminating a small number of roles," the company said.
Best Buy is among the retailers – Walmart among them – that is being impacted by lower consumer demand for electronics thanks to a combination of inflation and the transition away from early pandemic life.
While CNBC reports Best Buy had expected there to be a dip in demand from the early pandemic boom, this has been exacerbated by inflationary pressures that is seeing more consumers passing over bigger ticket items.
The cuts made by Best Buy represent a tiny percentage of its 100,000-plus U.S. employees, and says that this is typically the time of the year it would review its workforce.
The company still has positions available at its stores – more than the number of roles it cut – and it's planning on boosting its staffing numbers with seasonal workers ahead of the busy holiday season.