Best Buy has laid off a large number of its Geek Squad employees this week, according to a report published by 404 Media. The tech retail company has not made any official statement, but many workers are said to have received an email about a 'work from home' event in which they were informed to wait for a call from their respective bosses to receive confirmation about their employment status. Some 'going sleeper' posts in r/GeekSquad, an unofficial worker's subreddit, indicate that the layoffs are of a larger scale than the hundreds we saw made redundant last summer.
One worker told 404 Media, "Our leadership gave individual calls stating we were being let go for the simple fact that the company couldn't afford to pay us, more or less. It was extremely short notice and devastating." Meanwhile, we are sad to see some posts have been shared by people who say they stayed with the company for as long as 34 years.
Despite the lack of clarity from Best Buy at the moment, it is clear that such an announcement via email does create mass panic, as all would question their future with the company. Companies routinely conduct layoffs for multiple reasons when needed, and decency dictates both tact and clarity should be applied. Laws in certain states also require companies to disclose mass layoff numbers, such as the WARN Act in California.
Geek Squad agents replaced by AI?
Companies typically have many reasons to restructure, resulting in mass layoffs. Based on Best Buy CEO Corie Barry's response during the last company call, the company is redirecting its resources to incorporate AI and implement a new business strategy. The company further emphasized its commitment to integrate AI and said, "We will continue to lean heavily on analytics and technology to achieve these efficiencies. This includes leveraging AI safely and effectively.”
Best Buy wouldn't be the first company to implement mass layoffs to make savings from AI efficiencies. Last year Microsoft did the same, and this year followed up with further job cuts in the Xbox and Blizzard Activision, with some pointing at generative AI displacing humans in the workplace.
It is uncertain how Best Buy intends to integrate AI to undertake Geek Squad duties, or if it will be used as a support tool for tech support agents. But this restructuring plan also involves removing physical media from its Best Buy stores and updating its retail departments while adding that it plans to push Best Buy Health. With newer changes, Corrie anticipates better financial results, saying that the industry will grow again after two years of decline, adding that it is simply a matter of timing.
Irrespective of the company's goals, it paints a painful story of people with years of service and dedication to a company being cast aside for quick cost savings.
