Best Buy Sees 77% Drop in Earnings, Looks to Lose Employees

Paul Lilly

Better than expected Black Friday sales weren't enough to offset what has been a supremely disappointing third-quarter for Best Buy. For Q3 2008, Best Buy reported earnings of $52 million, or 13 cents per share on revenue of $11.5 billion. Wall Street was expecting much better numbers to the tune of 24 cents per share. The disappointing earnings represent a 77 percent tumble from the same quarter last year.

"The historic slowdown in the economy and its effect on our business over the past 90 days have been the most challenging consumer environment our company has ever faced," Best Buy CEO Brad Anderson said in a statement. "We believe that there has been a dramatic and potentially long-lasting change in consumer behavior as people adjust to the new realities of the marketplace."

Moving forward, Best Buy will look to restructure starting with offering voluntary buyouts to most of its 4,000 corporate employees, followed by possible layoffs if the buyouts aren't taken.

Rival electronics retailer Circuit City has also been going through financial woes of its own, recently entering into bankruptcy and closing many of its stores.

Image Credit: Flickr insanehank

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