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Best Buy to Furlough 51,000 Hourly U.S. Store Staff

Best Buy stated Wednesday it would furlough some 51,000 hourly U.S. store workers and that its sales dropped about 5% in the first two months of the current quarter, as the electronics retailer kept its shops shut due to the coronavirus pandemic.

Best Buy to Furlough 51,000 Hourly U.S. Store Staff

The corporate said from next week, some company workers would also participate in voluntary diminished work weeks and furloughs, while its high management and board would take a pay cut.

The company stated sales increased about 25% during an 8-day interval ended March 20, a day before the corporate announced its decision to modify to a curbside delivery model, as individuals shopped for work-from-home tools, gaming-associated products in addition to products needed to freeze food.

Best Buy added that domestic online sales jumped more than 250% from a year earlier, with half the sales coming from clients who picked-up their products from shops.

However, store closures and reduced footfall have dented demand, and sales plunged 30% from March 21 through April 11.

The company has withdrawn all financial estimations for fiscal 2021 and drawn down the full amount of its $1.25 billion revolving credit facility.

Best Buy had around 125,000 full-time, part-time and seasonal staff in the U.S., Canada and Mexico, at the end of fiscal 2020.