Best Buy Quietly Lays Off Geek Squad Agents, Switches Focus to AI

Best Buy's computer and electronics division, Geek Squad, quietly laid off its staffers last week as the company shifts its focus towards AI and cost-cutting measures.

First reported by 404 Media, several "agents" of the company present in the r/GeekSquad, the unofficial community page for the company, have been noted of "going sleeper" after being notified of a "company change."

DA#808 Signing off
byu/Advanced_Engineer_89 inGeekSquad

Former employees said that they only received an email for their dismissal last Tuesday "for the simple fact that the company couldn't afford to pay us, more or less."

Many of the workers eliminated have worked for Geek Squad for at least 10 years. Best Buy and Geek Squad have yet to provide a statement regarding the job cuts.

The layoffs were reported a month after Best Buy CEO Corie Barry said that the company would be experiencing some downsizing amid slower demands over the brand.

Barry also said that the electronics retailer will be redirecting "corporate resources to make sure we have the necessary assets dedicated to areas like AI and other elements of our strategy."

Best Buy predicted lower profits this year than its recorded revenue from the previous fiscal year.

Also Read: Amazon Cuts Off Hundreds of Employees in Cloud Service Division

Slower Demands Hit Best Buy Due to 'Choosier Shoppers'

Among the reasons Barry cited for the stagnating revenues of the company during the last earnings call in February was because of customers becoming more meticulous with their electronics expenses.

CNBC earlier reported that while the company has been relatively profitable in its home improvement products, its much pricier items have been selling less and less since the pandemic.

According to the report, Best Buy's store sales declined by 4.8% during the previous quarter after lower profits from its appliances, mobile phones, and tablet catalogs.

The only saving grace from the company was the upturn in its profits during the holiday seasons, including the Black Friday Sales, where more shoppers are turning in for discounted prices.

More Layoffs Ran Rampant Across the Tech Industry

The job cuts in Best Buy only reflect the growing trend in the tech industry as more companies lay off workers amid soaring inflations and supposed lower sales growth since the pandemic.

Industry tracker Layoffs.fyi, so far, has reported over 58,000 roles eliminated across more than 200 companies in the past four months.

The situation is feared to continue to rise as companies turn to AI and automated services to cut expenses by removing "redundant" roles in their cohorts.