Best Buy lays off 5,000 workers as it shifts focus to online sales

Enlarge / Snow outside of a Best Buy store in Oklahoma City, Oklahoma, on Feb. 17, 2021. (credit: Nick Oxford/Bloomberg via Getty Images)

Best Buy says it has trimmed its headcount by 21,000 over the last year as the pandemic has accelerated the company's transition to selling online. Most of those losses were due to attrition-including workers who were furloughed during the pandemic last year and then chose not to return to work. But Best Buy says that in recent weeks it formally laid off 5,000 workers. The company now has about 102,000 workers-including employees in its retail stores and corporate headquarters.

A company will often lay off workers because it is struggling. The last year has certainly been a challenging period for some brick-and-mortar businesses. This week, for example, electronics giant Fry's shut down all of its stores.

But that doesn't seem to be the situation at Best Buy, which has weathered the pandemic fairly well. In the last quarter, same-store sales at Best Buy's brick and mortar stores were up 12 percent compared to a year earlier. Meanwhile, online sales were up an impressive 89 percent.

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