There has been another round of cuts at a big Canadian employer.
Best Buy Canada is laying off 950 full-time workers in a response to a surge in online sales. Though overall sales have been slumping for three straight quarters, the company says its online sales are up 50%.
Best Buy is planning to re-work its business to reduce layers of management and combine some of its sales departments. But Amber Kanwar with BNN says a stronger focus on web sales doesn't mean Best Buy will adding positions in its web department.
"You don't generally need the kind of manpower that you do (for bricks and mortar stores) when you're operating online, because a lot of that is a self-serve type of business".
Kanwar says the electronics retailer has been losing market share to big online sellers like Amazon. The arrival of Target in Canada and a more aggressive rollout of Walmart supercentres has put the squeeze on Best Buy and other Canadian retailers, including Sears Canada.
Sears cut over 600 positions in Canadian stores on Wednesday. The department store has laid off some 2,200 employees in recent months including in management, call centres and warehouses.
Though retail is hurting, Kanwar says the slumping loonie could usher in a round of hiring in other sectors.
"What policy makers are hoping, is that the weak Canadian dollar can help to stimulate Canada's exports", said Kanwar. "If that's the case, Canadian businesses will feel better...about hiring more people, because they feel like exports are picking up. They can now afford to hire more people to make the goods that people around the world will hopefully be buying."