Best Buy Just Laid Off 5,000 Workers and Will Close More Stores

upstart writes in with an IRC submission:

Best Buy just laid off 5,000 workers and will close more stores:

Best Buy said Thursday that it laid off 5,000 workers this month and is planning to close more stores this year as more consumers buy electronics online.

The news comes at a time when big chains face growing competition from Amazon and other sites that sell items like TVs and laptops. Fry's Electronics said Wednesday that it would abruptly close all of its stores overnight, ending nearly four-decades in business.

Best Buy BBY) expects 40% of its sales to come from online purchases this year, up from 19% two years ago, and the company said it needed to alter its workforce in response to this shift.

CEO Corie Barry told analysts Thursday that starting earlier this month, Best Buy had been adjusting the mix of full-time and part-time employees in stores, due to "having too many full-time and not enough part-time employees." As a result of this reorganization, Best Buy laid off 5,000 employees, the majority of whom worked full-time. It also said it is adding approximately 2,000 new part-time positions. Best Buy has around 102,000 employees.

Ars Technica notes in Best Buy lays off 5,000 workers as it shifts focus to online sales:

Best Buy says its recent changes are an effort to adjust to this new market reality. Traditional stores aren't going away, but they're becoming less important. Best Buy says that it has been closing about 20 stores per year over the last two years and expects to accelerate the process in the coming year. Best Buy has 450 stores (out of roughly 1,000) whose leases will run out in the next three years. The company says that it always rigorously evaluates a store before renewing its lease, but in the future, the company will have "higher thresholds on renewing leases." In other words, under-performing stores will get shuttered more quickly than in the past.

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