Skip to main content

Best Buy to cut 950 jobs in Canada

  • Author:
  • Updated:
    Original:

Richfield-based electronics retailer Best Buy is eliminating 950 jobs at stores in Canada to reduce costs.

Bloomberg reports the cuts represent about 6 percent of Best Buy's 16,000 workers in the country. Despite the cuts, the report quotes an e-mail from spokeswoman Amy von Walter, saying the company isn't closing any of its 265 stores in Canada.

The news from Best Buy follows a disappointing holiday shopping season that showed a slight decline in holiday sales when analysts had expected growth. That triggered the biggest drop in the company's stock in more than a decade.

Bloomberg reports the international unit performed worse than domestic operations did, during the holiday season. Nine-week holiday season sales fell by 8.1 percent in that division, compared to a 1.5 percent drop domestically, according to the report.

The company said the declines outside of the U.S. were driven by previous closings of 35 large-format stores in Canada and China and same-store sales in the division actually increased by 0.1 percent.

According to Bloomberg, Best Buy said in a statement, "We continue to identify opportunities to improve our performance and accelerate our business transformation. Today's news in Canada is consistent with that goal. These changes represent our effort to streamline our business and even better serve our customer."

Digital Journal reports the move will allow Best Buy to focus more on its flourishing online sales.

The report quotes Best Buy Canada president Ron Wilson, "We have seen our online sales grow by more than 50 percent in the past year and new services such as in-store reserve and pick-up more than doubling. These changes in the way our customers are interacting with us have led us to look at how to best deploy our staff to meet those evolving needs."

Best Buy said it will consolidate sales departments and reduce management layers at its Future Shop and Best Buy stores in Canada, according to the report.

It has been a difficult couple of days for Canadian retailers. The Toronto Star reports in just the last two days Best Buy Canada and Sears Canada have separately announced restructuring plans that will result in more than 1,500 job cuts.

Next Up

holy angels high school j nelson

Update: Holy Angels evacuated over bomb threat, school says

Someone left a voicemail early Tuesday suggesting there was an explosive device.

radio station, microphone

Convicted stalker charged with harassment of another DJ at The Current

He pleaded guilty to similar charges involving the DJ's colleague back in 2015.

Mall of America exterior Tyler Vigen Wikimedia COmmons

10 new shops, food stops at Mall of America

Donuts, K-fashion, model cars — the new tenants cover a lot of bases.

Gophers basketball

Gophers fall below roster minimum, postpone Penn State game

It is "due to internal COVID-19 protocols within the Golden Gopher program."

Raheem Morris

Report: Vikings request interview with Rams' Raheem Morris

Morris was once the youngest head coach in the NFL at 33 years old.

train crossing S Boardman Ave, New York Mills, Minnesota - August 2013 crop GSV

Sheriff: Drunk driver crashed trying to 'beat the train'

The BNSF train slammed into the side of the driver's car.

ambulance

Man run over after parking dispute leads to road rage crash

The two groups fought about parking prior to the crash.

hwy 41 engler boulevard crash crop

Deadly crash shuts down small stretch of Chaska highway for hours

A driver crossed over the center median and hit another vehicle.

covid test 6

You can now order 4 free at-home COVID tests from the government

Tests will ship for free within 7-12 days, according to the White House.

covid-19

Minnesota's COVID-19 update for Tuesday, January 18

Minnesota has reached 11,000 COVID-19 deaths.

1114_LA-116

Vikings must continue building out receiving corps in 2022

Justin Jefferson headlines a young, promising group, but more depth is still needed

Related