Coronavirus: Best Buy To Furlough More Than 50K Hourly Employees

RICHFIELD, MN — Best Buy announced Wednesday that it will furlough about 51,000 hourly store employees, including nearly all part-time employees. The Richfield-based tech giant says the company’s year-over-year sales declined about 30 percent after it closed its stores in response to the spread of the new coronavirus in the United States.

"The situation we are all facing as a result of the COVID-19 pandemic is truly unprecedented," Best Buy CEO Corie Barry said in a statement.

The retailer began doing business by curbside service only March 22. It also suspended all in-home delivery, installation and repairs.

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Best Buy says it will take additional steps to save money as the COVID-19 crisis continues:

• Beginning Sunday, some corporate employees will participate in voluntary reduced work weeks and resulting pay, as well as voluntary furloughs.
• Barry will forgo 50 percent of her base salary, and the members of the board of directors will forgo 50 percent of their cash retainer fees through at least Sept. 1
• Company executives reporting directly to the CEO will take a 20 percent reduction in base salary through at least Sept. 1
• Other actions include:
  • Lowering merchandise receipts to match demand with a focus on "essential items."
  • Extending payment terms in partnership with key merchandising vendors.
  • Reducing promotional and marketing spend aligned to temporary operating model.
  • Lowering capital spending to focus on mandatory maintenance or high-value strategic areas.
  • Suspending the 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. Best Buy 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, according to a news release.

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