Best Buy has eliminated 400 employees at its Richfield, Minnesota headquarters as the company looks to cut costs. This is the first step in CEO Hubert Joly's "Renew Blue" project, which plans to cut $725 million in costs from the retailer's budget.
Employee cuts at its headquarters are expected to save the retailer about $150 million. While the current layoffs only affect office staff and no stores are yet slated to close, the company said that additional workforce reductions are expected in the coming months.
Although the retailer recently shuttered stores in Canada, the company says the round of cost cuts announced does not include any store closings or reduction in the number of retail staff.
Joly joined the company in August 2012 to help lead the struggling retailer's turnaround. Best Buy's founder Richard Schulze has expressed an interest in purchasing the company, however, recent media reports indicate that he has dropped plans for a takeover after failing to acquire the needed financing for the deal. Schulze has until the end of this week to make a bid for the company.
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