CEO Corie Barry told analysts Thursday that starting earlier this month, Best Buy had been adjusting the mix of full-time and part-time employees in stores, due to “having too many full-time and not enough part-time employees.” As a result of this reorganization, Best Buy laid off 5,000 employees, the majority of whom worked full-time. It also said it is adding approximately 2,000 new part-time positions. Best Buy has around 102,000 employees.
It is the first time Best Buy provided a specific number of job cuts, which were first reported by the Wall Street Journal.
The company also said Thursday that it closed 20 of its big-box stores in each of the past two years and expects to close a higher number this year. Best Buy has 450 store leases coming up for renewal in the next three years, and Barry said “there will be higher thresholds on renewing leases as we evaluate the role each store plays.” The company has around 1,000 stores in the United States.
Best Buy also plans to use more of its in-store space to fulfill home delivery orders. The retailer is piloting new store layouts that reduce the size of sales floors and expand the space dedicated to shipping orders.