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Firing day for Best Buy mid-level managers

  • Best Buy (BBY +2.5%) managers are falling by the wayside as the company initiates a sweeping cost-cutting operation.
  • Sources indicate as many as 2K managers (product and store) might lose their jobs after the dust clears.
  • Shares of BBY are on the move following the development.
Comments (4)
  • benitus
    , contributor
    Comments (1960) | Send Message
    Finally, BBY is doing something about its top-heavy operations. That should bode well for its turnaround, to kick out the heavy butts. Today's spurt went up to $26.20 before profit-taking set in. Good job, management. It's about time.
    26 Feb, 02:07 PM Reply Like
  • nikkor
    , contributor
    Comments (65) | Send Message
    2000 managers. It kind of makes me think about the individuals and their families. Store moral has got to be at an all time low. How much will this really affect their margins?
    27 Feb, 09:01 AM Reply Like
  • benitus
    , contributor
    Comments (1960) | Send Message
    nikkor....I think you meant "morale" rather than "moral", I don't think that firing useless store managers would hurt morale because it isn't across the board and it involves those under-performers. In fact, it should be a morale-booster because bad managers are often not popular and employees will feel uplifted, as it demonstrates the seriousness of management to turn things around for the store. Now, if it was a general layoff, then morale would definitely be affected adversely. What management has done is long overdue, as it has too many fat cats on its pay-rolls, and it sends out a signal for the rest to pull up their socks or they're out the door as well, since the store managers won't be able to protect them anymore.
    27 Feb, 09:19 AM Reply Like
  • benitus
    , contributor
    Comments (1960) | Send Message
    Wow, BBY results were stunning, given the bad climate it faced for the shopping season. I doubled my shares in BBY before the market shot up because I expect even better improvements in its future results, in the light of their belt-tightening and trimming the fat and useless, even though the company's guidance is lower for the future, which can be expected whenever business strategies are changed. But I think that management is understating its guidance for the future, so that it can have another great year if it beats its guidance. Long BBY.
    27 Feb, 09:24 AM Reply Like
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