Best Buy has dropped a huge bombshell for many of its employees amidst the COVID-19 pandemic which is already killing a lot of businesses as well as the economy is also in a dire situation. Because the company has said that they will be furloughing around 51,000 of their employees starting April 19 because of the huge decrease in demand. It was seen that the COVID-19 situation forced everyone to do panic buying which meant that demand was huge for a time being. However, it is now seen that there is almost no demand and people are being let go by their employers.
Also, the unemployment rate in the US has gone at an all-time high right now meaning that more people are being laid off then you think. Since the demand increased in March for Best Buy, they hired a lot of people. But they are now furloughed since the demand is even lower than in regular months. As per Best Buy, people bought freezers, computer monitors and other items to use for their stays at home during the pandemic. Now that the pandemic situation and lockdown is here to stay, people are avoiding to go out of their homes. Therefore, Best Buy is taking the same decision as others to furlough their employees and adopt other cost-cutting measures.
They added that their “decision will impact nearly all of its part-time store employees and some of its full-time store employees in the U.S.” The company added that about 82% of its full-time employees who work in stores or in the field, such as the Geek Squad employees, will continue to be paid. Also, those employees who are being furloughed will also be able to take benefits of health care being offered to their full-time employees. This decision from Best Buy is definitely a sign of things to come for sure.