Best Buy Offers Employee Bonuses Despite Upcoming Layoffs

Best Buy Offers Employee Bonuses Despite Upcoming Layoffs

Best Buy (NYSE: BBY) revealed it is giving out pandemic-related bonuses to all hourly workers as well as additional paid time off to employees that get Covid-19 vaccines. Despite laying off several staff members to meet its new reorganization strategy, the company is going forward with the bonuses. The company has yet to disclose how much the bonuses will require from its budget.

As of January, 2020 Best Buy had 125,000 full-time and part-time employees and later furloughed approximately 51,000 in April amid the pandmeic. After allowing only curbside pickup for several months, workers were called back in June. 

It is unknown how many workers are set to be laid off as a consequence of the reorganization.

The retailer’s sales have risen as consumers rushed to buy laptops, video game consoles, kitchen appliances and other equipment to work, learn and entertain themselves throughout lockdown. Furthermore, online sales almost tripled throughout the third quarter. 

Best Buy has chosen not to provide a fourth quarter forecast and believes it could undergo higher shipping costs, inventory challenges and lower-margin sales over the holidays. The company is set to announce its earnings on Thursday.

The company revealed that due to customers shifting to online shopping, employee roles within the business will also need to change.

“Our workforce will need to evolve to meet the evolving needs of customers while providing more flexible opportunities for our people,” it said in a statement.

The bonus will provide full-time hourly employees with USD500 and part-time workers USD200, according to the company. The benefit does not require employees to get the Covid vaccine.

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