UPDATE: 950 jobs cut at Best Buy, Future Shop

Layoffs comes amid surge in online sales

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."

Leave a comment:

showing all comments · Subscribe to comments
  1. tanjo posted on 01/30/2014 08:25 PM
    My wife went to Futureshop once, looking for the Playstation 24-inch 3-D Display. They sent her home with an HDMI Cable.

    When I go in and ask a technical question, they try to find the answer off the same cards that I just finished reading.

    We really won't miss them.
    1. CoffeeCon posted on 01/30/2014 09:07 PM
      @tanjo ...and now that bell bought radio shack there's no people that can help there either!
    2. Karl Burgin posted on 01/31/2014 09:37 AM
      @tanjo I've heard the workers make some serious commission though. Sometimes even surpassing IT professionals- even though I have more knowledge than they do.....
    3. john posted on 02/01/2014 12:34 PM
      @Karl Burgin the stuff i know about computers would put ITs out of a job .
    4. HP posted on 02/01/2014 01:41 PM
      @john When it's IT vs IS, IS always wins. IT are just neck down workies, with us IS, it's neck up professional management.
  2. CoffeeCon posted on 01/30/2014 09:06 PM
    buy up all the local companies, fire all the people. Thanks for visiting Canada, now GTFO you rotten company before we kick you out. My personal boycott begins now.
  3. Balloo posted on 01/30/2014 10:39 PM
    Not enough of them being laid off. Majority of them are useless to a ridiculous level. Most of them are from some part of Asia for a quick buck and just want to "stick it" to the white man by playing stupid when asked any basic technical question. Get rid of them all.
  4. Kyle posted on 01/31/2014 11:43 PM
    Is everyone at your work perfect? No? So then should I wish that you and all of the honest hard working people there get fired and shut down? No. Everywhere you go there will be incompetent workers, but for myself, a current employee at future shop and a very knowledgable and honest one at that, it makes me sick to read what you people have been writing. I had to say goodbye to a lot of great people. I do not speak on behalf of the company, nor should my comments reflect their decision in any way, but I get it. Times are changing and businesses have to adapt to changes in order to make profit. In a perfect world, nobody would need to lose their jobs but this is reality. Wishing that more people would lose their jobs because you may have had a bad experience with one or 2 people is low and you should really feel ashamed.
    1. HP posted on 02/01/2014 07:15 AM
showing all comments

Sign Up For Breaking News Alerts

Becoming a member only takes 60 seconds! Members get access to exclusive information and products that non-members do not, including concert ticket presales, trips, advance notice on upcoming entertainment events, movie screening passes, music giveaways and more!

Login with Facebook

Stay connected 24/7! Receive breaking news and programming alerts right to your inbox. CLICK HERE to sign-up.

Today's Poll

What can stores like Best Buy do to convince you to shop at their locations, as opposed to online?

Voting is restricted to one vote every 24 hour(s) VoteResults

Top Stories