Some 51,000 hourly Best Buy employees in the United States will be temporarily furloughed starting Sunday.
The Richfield-based company announced the furloughs Wednesday morning as consumer spending continues to plummet during the COVID-19 pandemic. The move impacts nearly all of Best Buy's part-time workforce and 20 percent of its full-time workforce (about 82 percent of the full-time store employees will continue to get paid).
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Furloughed employees will retain their health benefits at no cost to them for a minimum of three months.
Best Buy has continued to pay its employees despite stores being closed to in-store shoppers since March 22.
Since then, Best Buy has offered contactless curbside pick-up, which continues despite the furloughs. All in-home deliveries, installations, and repairs are suspended for now.
Best Buy CEO Corie Barry said, “The situation we are all facing as a result of the COVID-19 pandemic is truly unprecedented. As we previously communicated, we made the decision for the health and safety of our customers and employees to shift our stores to a temporary enhanced curbside service-only model starting March 22. At that time, we also suspended all in-home delivery, installation and repairs.”
Barry will forego 50% of her base salary and the members of the Board of Directors will forego 50% of their cash retainer fees through at least September 1, 2020.
“I am so incredibly proud of our teams’ execution – they seamlessly implemented a new and highly effective operating model in a matter of 48 hours across our entire store base," Barry said. "We are fulfilling essential technology needs for customers in a safe and innovative way, including continuing to provide remote technical advice and support. This time of working, learning, cooking, entertaining and, importantly, connecting across the country from home only underscores our strategy and purpose: to enrich lives through technology.”
