Best Buy Canada (NYSE: BBY) is terminating 950 full-time employees as the company reworks operations to reduce layers of management and combine some sales departments. The job reductions will occur at Best Buy and Future Shop locations across the country.
Best Buy joins a growing list of retailers trimming expenses. The company said no layoffs have been confirmed at U.S. stores, nor does it plan to close any of the 265 stores in Canada.
Best Buy warned Jan. 16 that job cuts were coming, saying it would "deeply lower" its cost structure after reporting bleak holiday performance. Year-end sales were lower-than-expected for Best Buy due to aggressive sales from competitors, supply constraints for tablets and iPhones, and fewer customers during the key week leading up to Christmas. Late last year, the company had been working to boost revenue by cutting costs, adding employee training and matching online prices to lure shoppers into stores.
Best Buy entered the Canadian market in 2001, with the purchase of Future Shop, then Canada's largest electronics retailer with 88 outlets. It has since tripled the size of the Canadian business and continues to use the Future Shop name on some stores.
Over the years, more competition entered Canada, but the market has proven anything but smooth sailing. Sears Canada is in the midst of a desperate turnaround plan as business continues to suffer and sales sink, while Target's Canadian unit has struggled to resonate with local shoppers and keep store shelves stocked at its 124 locations.
-See this Best Buy Canada press release
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