Best Buy Workers Furloughed While Computer SuperCenter Reinforces Staff
Best Buy Co. said it would furlough about 51,000 hourly store workers following a sharp drop in sales after the electronics chain closed its U.S. stores to customers.
Meanwhile, Computer SuperCenter of Greenwich said it would add staff in response to increased sales while operating more carefully to meet customer needs as an essential business.
Best Buy, which employed 125,000 workers, furloughed nearly all U.S. part-time staff starting April 19, and will keep only 82% of its full-time workers, including most Geek Squad staff.
Best Buy said sales have dropped about 30% from a year ago since it closed stores on March 21.
In contrast, Computer SuperCenter sales have increased 18% while repair service volume has surged 34%. The company has established appointment-based store hours and services hours. The safest and cleanest possible physical distancing guidelines are being adhered to.
Computer SuperCenter President, Brian Desrosier said, consistent with company performance, employees are earning more while working less. Best Buy CEO Corie Barry will take a 50% cut in her base salary and other senior executives would reduce their salaries by 20%. Best Buy, which has already drawn down its credit line, is also cutting marketing spending and its 401(k) matching program. Computer SuperCenter has expanded marketing efforts and will continue to match employee 401k contributions at a rate of 4%.