Best Buy plans to lay off 2,000 managers nationwide in an attempt to cut costs, sources from the Richfield-based electronics company told the New York Post.
No stores are planning to close at this time and the exact number of layoffs is not certain, but an "insider" told the New York Post layoffs could affect 2,000 managers in the company's 1,000 U.S. retail stores. The newspaper reports about 500 field managers were notified of the cuts last week, while store-level managers are expected to get the news by next week.
"Affected workers are mostly in middle management, many of them commanding salaries soaring into the six-figure range as they supervised product categories at upwards of a dozen stores each," the New York Post said.
Best Buy has more than 145,000 employees globally, according to its website, and 8,000 of them are in Minnesota, according to the Pioneer Press. The New York Post report did not indicate whether any of the store's Minnesota employees will be affected.
The company has faced increased competition in recent years from competitors such as Amazon, Apple, Walmart and Target, according to the Pioneer Press.
In January, Best Buy laid off 950 employees in Canada. A year ago, Best Buy eliminated 400 jobs at its Richfield headquarters as part of a plan to cut $725 million in costs, according to the Minneapolis/St. Paul Business Journal. The year before, it closed six big-box stores in Minnesota and laid off hundreds of workers, the Pioneer Press reports.
An official for Best Buy declined to comment. The company is scheduled to report earnings on Thursday.