Best Buy to cut 2,400 jobs

Best Buy
Best Buy store in West St. Paul, Minn. The company will cut 2,400 jobs or about 1.4 percent of its workforce.
MPR Photo/Nikki Tundel

Best Buy is taking another step in its evolving plan to shrink the company and cut costs.

Announced Friday, the company will cut 2,400 jobs, or about 1.4 percent of its workforce, it announced Friday. About 600 Geek Squad tech support jobs will be eliminated, along with 1,800 store positions by Aug. 1. Employees will receive severance payments and help finding other jobs. The company is not disclosing how many of the cuts will occur in Minnesota.

"These changes were previously announced as part of the leadership team's ongoing turn-around plan. We are working to minimize the impact of the changes on employees, while building a foundation for a strong future," said Bruce Hight. spokesman for the Best Buy board of directors.

Best Buy does about $50 billion in annual sales. But it's struggling to compete with Walmart, Amazon.com and other retail rivals. The retailer is also searching for a permanent CEO to replace Brian Dunn, who resigned in April.

Sales at Best Buy stores which have been open at least 14 months have fallen for seven straight quarters. The company has closed 43 big-box stores and will shutter another seven by the end of the year.