Best Buy Cuts 650 Geek Squad Techies

tripleevenfall writes "Best Buy has cut approximately 650 jobs from its Geek Squad division, according to the Minneapolis Star-Tribune. The cut represents about 4% of Geek Squad's total workforce. The consumer electronics giant said the workers primarily service televisions and appliances in consumers' homes. Best Buy's performance has struggled to keep up with changes in consumer electronics, as the weight of its big-box format inhibits it from fending off competitive pressure of online retailers."

Comments

Beginning of the End

[ackthpt]

When you cut support you begin to cut your own throat.

Re:Beginning of the End

[Glothar]

Good thing they only cut Geek Squad people, then.

Re:Beginning of the End

[Samantha Wright]

I bring you an image with a relevant sentiment attached.

Re:Beginning of the End

[Jeng]

I thought charging for support accounted for around 90% of their profit?

If they are losing money on support they are totally fucked.

Re:Beginning of the End

[Jah-Wren Ryel]

When you cut support you begin to cut your own throat.

The beginning of Best Buy's end started with the end of Circuit City. Best Buy thought that they were now free of competition, so they reduced the variety of the products they stocked and focused only on high-margin stuff (for example, Monster Cable and in-house brands). They thought that their customers no longer had a choice and so they tried to stick it to us.

Now you hear them whine about being "the internet's showroom" - they think people come in to look and then go buy online instead. That's almost a complete fallacy because almost all of their products are commodities, you gain basically nothing from a hands-on experience with just about everything they sell. Even things like TV's, AVR's and speakers don't really give up much useful information from the show-room experience because performance in your own home is always different from in the show-room. You are almost always better off reading a variety of reviews than trying to make subjective judgements yourself in the store.

Re:Beginning of the End

[drinkypoo]

It's more like their throat is being cut for them, so they got rid of some throat.

The Geek Squad isn't about support, it's about selling you services you don't need that slow down your computer to produce additional business.

It's been said before that consumers of today are actually savvy and well-educated. Well, I think that's a load of horseshit; some of us are, but most people are as ignorant as ever about things that matter. Most people are merely better educated than ever before on what celebrities are doing and on what corporations want them to purchase. I would like to think that the Geek Squad is failing because consumers are wising up, but I suspect it has more to do with people having less computer problems because they're abandoning antiquated systems that can't reasonably be maintained or secured.

Re:Beginning of the End

[b4dc0d3r]

You sound like an informed consumer, not their target market. People do walk around and then buy online, or at least comparison shop. Some people do it by sending teams to different stores, and the lowest price feature compatible item gets bought.

People don't want a hands-on experience - they do want to window shop, though. And it helps to stay organized if you have a limited selection, and maybe tiered pricing in several physically separate locations. Once you narrow it down, you find something similar online and buy it. Not that item, just something like it.

It started with people checking out specials on their website while in the store, and noticing price mismatches. Now word has gotten around that you don't buy without checking the price first - and while you're at it, why not check someone else's store too?

They did cut inventory and act like they were the only choice, and people started window shopping there and buying online, and it was entirely their own fault.

Re:Beginning of the End

[pavon]

Now you hear them whine about being "the internet's showroom" - they think people come in to look and then go buy online instead.

Not to mention that they hardly showroom any real hardware anymore. When I bought my mp3 player 7 years ago I bought it in a retail store because I wanted to interact with it first to see how I liked the interface, and if the hardware felt flimsy. Now I walk into a retail store, and the "display units" all have cardboard screens.

First Post

[CompMD]

Brought to you by Monster Cable.

Re:First Post

[Jeng]

Can I get a one year replacement warranty on that for more than the product is worth?

Very Shortsighted

[Anonymous Coward]

You know, the customers' porn isn't gonna watch itself.

Which technicians were cut?

[Rone]

Which technicians were cut?

The ones with the lowest technical aptitude, or the ones who pushed the least amount of unnecessary service on their customers?

Re:Which technicians were cut?

[afidel]

The ones that had been there the longest and thus cost the most for the company. Just like Circuit City when they were circling the drain, cut your best people because they are "expensive".

Re:Which technicians were cut?

[Jeng]

Which technicians were cut?

The ones with low agility, the others moved out of the way fast enough.

Re:Which technicians were cut?

[Billly Gates]

Then GeekSquad is like the rest of the IT field.

Remember back in the good old days when a System Administrator who had 7 years experience pulled in $120,000 a year? Now if you make over $40,000 you are eyed to be axed. After $45,000 you have to walk in water and know everything to justify to keep your job. They can find some guy with 1 year experience in help desk to always replace them for $32,000 a year to manage their mult million dollar IT infrastructure ... rolls eyes.

I guess cost centers are always treated like crap even if they generate revenue and actually hurt the company when cut

Re:Which technicians were cut?

[Billly Gates]

Most are certainly not random.

My guess is those that sold the least amount of protection plans. All BestBuy is based is upon sales metrics like 80% of the rest of retail. Credit card sales and protection plans are YOU OUT OF THERE.

Re:Which technicians were cut?

[Chas]

Which technicians were cut?

The most emo ones. They volunteered to do it themselves.

Re:Which technicians were cut?

[Billly Gates]

Uh, thanks for the offensive reply.

  I do contracting and I am not a sys admin. I have seen all too many times some young 28 year old who was help desk do sys admin for 1200 computers with outdated domain controllers with stale OUs all over the place because the senior guys who made 70k were let go due to economic times etc.

I have not seen any respectable sys admin make more than 55k in years which is shocking since having a crappy help desk costs little compared to having the network down!

oh no!

[bitt3n]

great. who am I going to get to exorcise the virus from my power supply unit now?