Best Buy has drastically reduced its workforce, including its geek squad.Shortly after the layoffs, the Minnesota-based company announced that artificial intelligence would assist customers.
To deal with “reduced business demand,” Best Buy has drastically reduced its workforce and laid off numerous employees, including Geek Squad field agents, current and former employees said in a statement from the Minnesota-based company. told the Star Tribune.
The Litchfield, Minn.-based company's recent wave of layoffs included home theater repair technicians and telephone support specialists, the paper said.
The layoffs are part of a larger restructuring plan that Best Buy CEO Corie Barry announced during an earnings call in February. The Star Tribune reported that the plan, which also includes job cuts, was proposed to “stabilize the company after months of declining sales.”
“The reductions will occur primarily in the first half of 2024 and will be company-wide,” Barry said on a conference call.
Ensuring that “field workforce resources” are properly balanced is a top priority for Best Buy, and the company “wants to ensure customers have the best experience wherever they want to shop.” Barry said on a conference call.
He said the company wants to scale back “in areas where we expect sales to be lower than we anticipated a few years ago,” according to the newspaper.
Best Buy did not respond to USA TODAY's request for comment.
Here's what we know:
Best Buy says furloughed workers will receive severance pay
It was not immediately clear how many Best Buy employees have been laid off since the restructuring plan was announced, or how many employees were included in the most recent layoffs, as the company declined to say. is not clear.
“Eligible affected employees will receive severance pay and some will be offered the opportunity to transfer or reapply to the company,” the company told the Star Tribune.
“We know better than anyone that the consumer electronics industry is constantly changing with new technology, further innovation, and evolving customer expectations. That means we need to change, too,” the statement, obtained by the Star Tribune, said. That means there is.”
The company intends to follow the steps outlined in its February earnings call, saying it will “ensure a balance of resources and focus on the right strategic areas to increase the efficiency of the business and best position it for the future.” We are confirming that we are directing them to the ”
Best Buy announces AI venture
Best Buy has announced a new artificial intelligence venture following reports of layoffs, saying it is serious about putting itself in the “best position” for the future. The venture was founded in collaboration with Google Cloud and Accenture to “use generative AI to deliver a more personalized, best-in-class tech support experience for our customers.”
The AI-powered virtual assistant is expected to help Best Buy customers troubleshoot product issues, change shipping details, manage software and more, according to a news release.
“Self-service support options” will be available online, through the Best Buy app or by phone starting this summer.
“These new generation AI-powered capabilities further strengthen our commitment to unlocking the power of people and delivering better, more personalized experiences for our customers,” said Best Buy’s Chief Digital Analytics and Technology Director Brian Tilzer told the Star Tribune.
Geek Squad revamp underway as part of rebuilding plan
Several initiatives are planned to get the company back on track, and one of them, according to the Star Tribune, is to make Geek Squad “more efficient.”
Barry said the company will continue to “build Geek Squad as a service operated as a business-to-business model.”
The Geek Squad employees will eventually be hired by Best Buy Health, which sells and provides medical technology to help home health patients, the Star Tribune reported.
