Best Buy considers in-store layoffs

first_img AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREOregon Ducks football players get stuck on Disney ride during Rose Bowl event160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! MINNEAPOLIS – Best Buy Co. Inc. may lay off some workers as the nation’s largest consumer electronics retailer looks to rein in spending, a spokeswoman said Wednesday. A memo from Best Buy President Brian Dunn this month asked managers to find spending to cut, Best Buy spokeswoman Susan Busch said. The idea was to tell managers, “This is what we’re up against, we want to talk about the work we’re doing and what implications it might have, and to talk about the transformational changes that are under way,” she said. Busch said the changes could include layoffs. Best Buy employees will be told more about potential layoffs in April, she said. Busch said the memo did not include a cost-savings target. Wednesday, the Minneapolis Star Tribune reported that Best Buy is seeking $300 million in savings during the current fiscal year. Wall Street sent Best Buy shares plunging by 12 percent on a single day in December when the company acknowledged that its sales and administrative expenses had risen 22 percent for the quarter. Chief Executive Brad Anderson called the spending “unacceptably high” at the time. The extra spending comes as Richfield, Minn.-based Best Buy is remaking many of its stores to cater to certain types of customers. For example, it has added personal shoppers at stores aimed at suburban soccer moms, or added high-end home theater sections at stores aimed at affluent professionals. Credit Suisse analyst Gary Balter said in a research note on Wednesday that the $300 million figure would amount to about 5 percent of Best Buy’s expenses, which he called “very significant.” That would be enough to push 2006 earnings guidance above the current $2.65 per share expected by analysts, he wrote. “Many of the cost cuts could come at the store level, where the company may have gone (too) far in hiring layers of management” at the stores that focus on certain customer segments, Balter wrote. Some stores have managers for each segment, such as soccer moms. “We believe this type of extra is not necessary and eliminating these positions will not significantly impact the company’s service-centric strategy if done properly,” Balter wrote. Best Buy shares fell 64 cents, or 1.2 percent, to close at $54.52 on the New York Stock Exchange. last_img read more

Men’s Tennis Set To Take on No. 47 Washington and No. 32 Minnesota

first_imgWashington enters the weekend with a 7-3 record and will play Minnesota on Friday before facing the Bulldogs. The Huskies are coming off a 4-3 loss to Indiana on Feb. 26. Washington is led by Enzo Sommer and Amit Batta, who have a 7-2 and 7-0 record, respectively. The Bulldogs (6-5) will be looking to snap their three-game slide after falling to No. 23 Oregon and BYU last weekend. Drake is led by sophomore Vinny Gillespie, who is ranked 55th in singles nationally, holds a 8-1 record at the No. 1 spot. Fellow sophomore Tom Hands has also given the Bulldog lineup some consistency as he is 6-2 this season. Drake stays on the road next week when it travels to No. 9 Michigan on March 10 and Michigan State on March 12.  Print Friendly Version Minnesota opened the season 7-0, but since then have lost two of its last four. In the Gophers’ last time out, they fell to Oklahoma State, 5-2 on Feb. 24. Minnesota is led by Mat Spec and Stefan Milicevic, who are ranked 68th and 117th, respectively. Spec has a 6-4 at the Gophers’ top spot with three of his losses coming against nationally ranked opponents, while Milicevic leads the team with eight wins. DES MOINES, Iowa – The Drake University men’s tennis team has a tough task head of them as the Bulldogs square off against No. 47 Washington on Saturday and No. 32 Minnesota on Sunday in Minneapolis at the Baseline Tennis Center.last_img read more