The sales floor at Best Buy may look emptier moving forward. That’s because the consumer electronics company is planning to scale back on its workforce, according to CEO Corie Barry.
Barry told investors during the company’s earnings call on Thursday that a number of factors are at play, including finding a balance between its workforce and where customers want to shop. The restructuring initiative also looks to reallocate resources towards growth areas, such as artificial intelligence.
Barry added that the changes will be implemented during the first half of fiscal year 2025.
Matt Bilunas, Best Buy’s chief financial officer, told investors that the retailer expects to close 10 to 15 stores. The Richfield, Minn.-based retailer closed 24 of its locations during the previous fiscal year.
Closures may have already begun. The Star Tribune reports that Minneapolis location is said to be closing this week.
Looking ahead, Best Buy is predicting another year of softer sales, partly due to “increasing industry sales stabilization.”
Best Buy said in its latest earnings report that revenue for the 2025 fiscal year would range between $41.3 billion to $42.6 billion, with comparable sales being between 0% and 3%.
Despite a pressured consumer electronics sales environment, the retailer surpassed Wall Street expectations. It reported $14.65 billion in revenue, or $2.72 in earnings per share, during its fourth quarter, which concluded Feb. 3.
Analysts expected the retailer would only generate $14.56 billion in revenue, about $2.52 per share.
Best Buy stock was up about 1% on Thursday afternoon.