Best Buy Co. is eliminating roughly 400 positions at its corporate headquarters in Richfield, Minn., the Pioneer Press reports. Affected employees were being notified Tuesday morning.
"Best Buy today confirmed that it has, as part of its Renew Blue transformation efforts, eliminated approximately $150 million in SG&A (administrative expenses), including an approximate 400-person reduction in employee head count in its headquarters," the Minnesota-based electronics giant said in a statement on Tuesday.
Last November, CEO Hubert Joly vowed to cut $725 million in annual costs when he outlined his transformation efforts, dubbed “Renew Blue."
Best Buy said the cutbacks announced on Tuesday "represents the first phase of this initiative, with additional reductions to come during the year."
MPR notes the initial cost cutting measures do not affect retail store employees and/or include any additional store closings.
Best Buy is expected to provide greater detail on its cost reduction efforts when it releases its fourth-quarter earnings.
He has until midnight on Thursday, Feb. 28, to submit a bid to take the struggling retailer private.
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