Best Buy Returns to Profit, Announces Layoffs
Best Buy Thursday posted a $293 million profit in the fourth quarter, compared to a $409 million loss the same time the year before.
The result was attributed to cost cutting, and was enough to overcome the chain’s sluggish holiday sales.
“As we said in our holiday sales release, the fourth quarter was an environment of declining retail traffic, intense promotion, fewer holiday shopping days and severe weather. In the face of these unusual circumstances, our strategy to be price competitive and provide an improved customer experience resulted in market share gains in a weaker-than-expected consumer electronics market,” CEO Hubert Joly said in a statement.
Also this week, Best Buy announced that it will lay off 2,000 managers, according to the Minneapolis Star Tribune.