BLOOMINGTON, Minn. — Calling the business climate surrounding the COVID-19 pandemic "unprecedented," Best Buy CEO Corie Barry announced temporary furloughs likely to impact more than 50,000 of the company's hourly employees across the country.
In a virtual message to her workforce, Barry talked about the changes Best Buy has been forced to implement, from closing stores and switching to curbside service, to suspending in-home deliveries, installations and repairs.
"We are fulfilling essential technology needs for customers in a safe and innovative way, including continuing to provide remote technical advice and support," Barry shared. "This time of working, learning, cooking, entertaining and, importantly, connecting across the country from home only underscores our strategy and purpose: to enrich lives through technology.”
But the bottom line is that despite the changes, Best Buy is taking a financial hit. On Wednesday the Minnesota-based corporation announced changes that will take place next week that will impact thousands.
- Beginning April 19, the company is temporarily furloughing approximately 51,000 domestic hourly store employees, including nearly all part-time employees. The company is retaining approximately 82% of its full-time store and field employees on its payroll, including the vast majority of In-Home Advisors and Geek Squad Agents. Furloughed employees will retain their health benefits at no cost to them for a minimum of three months.
- Beginning April 19, some corporate employees are participating in voluntary reduced work weeks and resulting pay, as well as voluntary furloughs.
- CEO Corie Barry will forego 50% of her base salary and the members of the Board of Directors will forego 50% of their cash retainer fees through at least September 1, 2020.
- Company executives reporting directly to the CEO will take a 20% reduction in base salary through at least September 1, 2020.
- Suspending 401(k) company matching program
To help employees financially impacted by the pandemic, Best Buy has partnered with its founder, Dick Schulze, to establish a $10 million employee assistance fund, available to all part- and full-time hourly employees who have been with the company longer than one year.
Best Buy says the corporation and Schulze shared equally in the creation of the fund and the company’s portion was paid by repurposing the majority of its annual corporate giving budget.
Barry's message to employees ended on a hopeful note, assuring them that Best Buy leaders are looking past the pandemic, and making sure the corporation is ready to roll when consumer confidence returns.
“The situation remains very fluid and there is still a great deal of uncertainty, particularly as it relates to depth and duration of store closures and consumer confidence over time," Barry said. "We are taking the steps necessary to resume providing our customers in-home services in the near future, keeping in mind our overriding priority on the safety of our employees and customers. We are also preparing to re-open stores to customers as soon as it is safe to do so, with timing likely to vary at state and local levels. In the meantime, as you would expect, we are focused on making the difficult decisions necessary to ensure that at the end of this crisis Best Buy remains a strong, vibrant company.”
More news
RELATED: Two tales, one company