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Best Buy to Cut Staff at‭ ‬Minneapolis HQ

Rob Crossley's picture

By Rob Crossley

January 28, 2009

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Retail chain Best Buy has confirmed it will now be taking involuntary redundancy measures‭ ‬at its‭ ‬Minneapolis headquarters.‭

The new measures have come as a last resort for the retail giant,‭ ‬which offered voluntary redundancy packages back in December to which not enough staff had accepted.

A Best Buy spokesperson confirmed the layoffs on Tuesday to finance and business website‭ ‬Forbes.‭

It is unclear how many workers will be let go,‭ ‬but only‭ ‬500‭ ‬of some‭ ‬4000‭ ‬employees had chosen to accept voluntary redundancy packages.‭ ‬A full account is expected in February.

savagehenry's picture

Kim_Naroz said: Best Buy DESERVES to go out of business more than any other company.

Have you actually thought about what you are saying here? What about all those staff that are now picking up welfare checks? I don't care who you are or what you do..There is something definitely wrong if you are trying to justify, to normal hardworking people, why the size a company the size of Best Buy, should go out of business. It's not some Mom and Pop organisation! It a Fortune 500 company !! Lots of money, lost of jobs.. lots of people the state will have to provide for.

And talk about labouring the point.... And you know.... it's not like my posts can be short.. But we get it !!!!.. They were a bit rubbish and probably deserved to lose some customers, but I bet all of those complaints you raised in you epic were store dependent and most likely solved with localised staff training, a lot can be said for company that doesn't train its staff properly. But that unfortunately one of the many way large multinational cut cost. It's similar here in the UK with the Dixon's here in the UK.. Electronic superstores are always a bit rubbish for the policies and customer service (or their lack off). We know this, that's why the more discerning of us shop elsewhere.

But as with your arguments against Sony. Obviously people must like them, to help make them "the largest specialty retailer of consumer electronics in the United States and Canada "(source: Wiki). So what is the real reason you've just jump on your hobby horse about Best Buy? Are you one of the their slighted customers? Is that where you bought your PS3 from ?

Kim_Naroz's picture

Best Buy is obviously the next retailer small enough to close all their stores, just like Circuit City was.

Best Buy DESERVES to go out of business more than any other company.

Look at the FACTS as PROOF:

* Over 12,000 consumer complaints were filed with the Better Business Bureau against Best Buy during the last year for reasons such as:

(a) Refusing to honor warranties

(b) Refusing to honor insurance (especially on items like expensive electronics and computers)

(c) Selling previously owned products that have been "repackaged" as if they were "new" items at new prices.

...Oh, and then there is the FACT that FIVE of the State's in our nation have Attorney Generals who are seeking legal action against Best Buy. Those five states are Connecticut, Ohio, Wisconsin, Pennsylvania, and Florida...And more are currently investigating Best Buy as we speak. Some of the reasons the Attorney Generals are going after Best Buy is because:

(1) Best Buy uses various forms of "Bait-n-Switch" advertising that is illegal. Best Buy will advertise a product with a very low price that they must obviously be selling at a financial loss. But, Best Buy knows that they don't have much to lose, because they only have a very small quantity of items to sell. Best Buy as two unethical and immoral goals with this form of advertising:

(a) Best Buy wants to get you into their stores so that you can buy something. The moment you discover that the item you came in to purchase is no longer in stock, you are in a position where Best Buy wins if you purchase ANYTHING--such as a regularly priced CD or even a pack of over-price bubble gum, since you obviously would not have came into a store like Best Buy just to buy some bubble gum. This is one of the reasons why several states Attorney Generals have sought legal action against Best Buy.

(b) Best Buy is HOPING that their competitors will "match" the low price that Best Buy advertised, because this will HURT the competition in immoral ways. If a competitor such as Circuit City DOES have lots of items in stock that Best Buy advertised at unethically low prices in their "Bait-n-Switch" scheme, it means the stores like Circuit City will end up being HURT FINANCIALLY as a result of Best Buy's immoral business planning. This is also one of the reasons why several states have gone after Best Buy.

(c) Best Buy will often REFUSE to honor Warranties and Insurance. Here is a tip I can give you from personal experience with Best Buy. Do NOT bother buying insurance on a computer or a laptop, because virtually ANYTHING that goes wrong with it will not be handled by the insurance since it will be classified as "A Software Problem," which the insurance does not handle. And the only type of "Hardware" problems Best Buy will honor are ones that are so bad that they will place the blame on you for either "accidentally" or "deliberately" doing it, which means they don't cover it.

(d) It's like this with HDTV sets and A/V Receivers, too. Best Buy simply comes up with excuses why they cannot replace items.

For example: I can tell you about a personal situation where a big Projection HDTV was purchased from Best Buy, and $400 was spent on insurance. When the Geek Squad employee arrived, he could clearly see that about one-third of the entire screen had a huge yellow/green tint that was being displayed at all times around the entire perimeter of the screen, including a giant circular mass in the corner. The Geek Squad employee said, "I can't make this any better, so I think you should leave it the way it is." My friend then said, "Well, I'm glad I spent that money on insurance, because I'm obviously gonna need a new HDTV, since we can't keep watching it like this." The Geek Squad employee then said, "We won't give you a new HDTV set for a problem like this."

My friend said "WHAT!!! THAT'S WHY I BOUGHT INSURANCE!" The Geek Squad employee then said, "This problem is mostly around the outside of the screen; you can still see in the interior where most things appear on the screen, so Best Buy won't replace the HDTV." The Geek Squad employee then went on to say, "It's like that with Plasma HDTV sets, too. We aren't going to replace a $5000 TV just because several dozen pixels burn out.." ...

Obviously, Best Buy is NOT the place to buy expensive electronics from. Other stores would have exchanged an item without any trouble at all.

I have talked to people on Internet forums about this, as well as many people near my home. Best Buy is NOT the place you want to do business with. Seriously, it doesn't matter if you are a PS3 fan, a Wii fan, or an Xbox 360 fan, it is dangerous to do business with Best Buy. I have a friend who bought an Xbox 360, opened it up IN THE STORE and saw that the games included with the system were cracked (obviously because the system was thrown during packaging) and the managers Brian S. and Dave B of store 415 would NOT give my friend a replacement system with games that were undamaged!!! And then, they told my friend not to return to the store...And Best Buy corporate took the side of the managers rather than my friend, even though all of this was on film at the store.

Just one final thought:

If you have a problem with Best Buy, the Better Business Bureau and the Attorney General of the State of Connecticut want to know about it. Here is something you should read from the Better Business Bureau website that talks about Best Buy:

Government Actions

In May of 2007 Connecticut Attorney General files a lawsuit against Best Buy alleging the chain used in-store computer kiosks to deceive consumers about product prices and overcharge them. The complaint alleges Best Buy used in store kiosks to conceal lower on-line prices and wouldn't adhere to their price match guarantee. Without admitting fault or wrongdoing, the company added banners to the kiosks indicating that the kiosks reflect local store pricing. For more information, you may contact the Connecticut Attorney General's office at http://www.ct.gov"]www.ct.gov

....
I really do hope this information helps people out. I really was just trying to provide fact-based information, and trying to save fellow consumers from experiencing the problems with Best Buy that so many other tens-of-thousands of people have.