RICHFIELD, Minn. - Minnesota-based electronics giant Best Buy took another painful step Tuesday in its quest to remake it's brand, announcing the elimination of 400 positions at the company's Richfield headquarters.
Impacted employees were being informed of the job cuts Tuesday morning.
The following statement was released by Best Buy's public relations team.
"Best Buy today confirmed that it has, as part of its Renew Blue transformation efforts, eliminated approximately $150 million in SG&A costs, including an approximate 400 person reduction in employee headcount at its headquarters. The majority of these savings come from non-salary expenses. This initial reduction has been achieved by enhancing the focus on the company's core business, removing management layers and eliminating operational inefficiencies."
"Today's announcement does not include any store closures and "Blue Shirt" sales associates are not affected. Best Buy remains focused on delivering its customer promise to provide: a low price guarantee, the latest and greatest devices and services in one place, impartial and knowledgeable advice, the ability for customers to shop when and where they want and have support for the life of the product."
The company maintains that the cost-cutting measures are part of Best Buy President and CEO Hubert Joly's "Renew Blue" transformation efforts. Joly previously announced that Best Buy would remove $725 million in costs. The $150 million reduction announced Tuesday represents the first phase of this initiative, with additional reductions to come during 2013.
Best Buy will report its quarterly earnings later this week and will provide greater detail on its cost reduction efforts then.
Thursday also marks the deadline when Best Buy's founder and former chairman Richard Schulze must unveil whether or not he intends make a buyout offer for Best Buy to take the company private.
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