US electronics retailer Best Buy to axe 2,400 jobs

Best Buy Co Inc, the largest US retailer of consumer electronics is slashing 2,400 jobs as part of its cost reduction initiative amid growing competition from online vendors and diminishing revenue from its entertainment segment.

Of the 2,400 job cuts, 600 will be from its subsidiary Geek Squad which is a provider of computer related services to residential and commercial clients, on site as well as over the internet. Other 1,800 will be from store personnel. The total job cuts represent around 1.4 per cent of the company's workforce.

Best Buy said that the changes are in accordance with the company's turnaround plan announced earlier.

In March Best Buy said that it will close 50 of its stores and axe around 400 jobs as part of its plan to achieve a targeted cost reduction of $800 million by 2015. The present job cuts are in addition to the earlier measure.

The affected Geek Squad employees have already been notified and would be paid severance pay.

Minneapolis, Minnesota-based Best Buy is a leading global retailer of technology products and services. The company has around 167,000 employees.