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alstry (35.40)

BestBuy.... a big FU virus to employees....????

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April 15, 2009 – Comments (10)

From the WSJ:

Recent changes to store-staffing at consumer electronics retailer Best Buy Inc. should save the Richfield, Minn., company money but are drawing some comparisons to Circuit City Stores Inc.'s disastrous personnel moves two years ago.

Best Buy over the last week notified workers of the staffing changes, which a spokeswoman said "places greater emphasis on customer-facing employees and provides more focus and clarity to the leadership roles in the store."

In an email response, Best Buy spokeswoman Susan Busch declined to provide specifics of the staffing changes. But brokerage firm Sanford C. Bernstein told clients in a note that as many as 8,000 senior sales associates are effectively demoted to positions that could eventually pay half the hourly rate as their old jobs. The retailer is also consolidating some assistant store manager positions, which Bernstein estimates could eliminate about 1,000 salaried jobs.

....

Ms. Busch confirmed recent guidance includes the reorganization's impact but called Bernstein's figures "on the high side" while otherwise declining to provide specifics.

She also confirmed an unspecified number of jobs will be cut in what she called efforts to improve customer experiences and to evolve in a "global financial environment ... unlike anything we have ever seen."

But she rebutted comparisons to Circuit City, which laid off some of its most experienced sales representatives as it tried to cut costs but eventually went out of business earlier this year.

UNLIKE ANYTHING WE HAVE EVER SEEN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!  I guess we have no historical comparisons to gauage against.....hmmmmmmmmmmmmm.

10 Comments – Post Your Own

#1) On April 15, 2009 at 5:52 PM, alstry (35.40) wrote:

Ask yourself this question.....WHAT WOULD HAPPEN TO YOUR FAMILY IF YOUR FAMILY INCOME WAS CUT IN HALF????

WHAT WOULD HAPPEN TO YOUR FAMILY IF YOU WERE TERMINATED FROM YOUR JOB???

IN THE END....IS THERE REALLY MUCH OF A DIFFERENCE???

 

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#2) On April 15, 2009 at 6:09 PM, alstry (35.40) wrote:

From the WSJ:

NEW YORK -- A sharp increase in credit-card loan losses at Capital One Financial Corp. does not bode well for Bank of America Corp. and other big consumer lenders.

Capital One said Wednesday its net charge-off rate for U.S. card holders -- the rate of loans for which collection is unlikely -- rose 1.27 percentage points in one month, to 9.33% in March, exceeding the unemployment rate by an expanding margin.

Usually, card-loss rates during economic stress more or less track the unemployment rate, but bankers at J.P. Morgan Chase & Co. and Bank of America had warned recently that the loss rates could exceed the unemployment rate in this severe downturn. The unemployment rate for March is 8.5%, up from 8.1% in February.

Although you wouldn't be considered unemployed, how many families can pay their credit card obligations if their wage gets cut in half.  Soon, you too will realize why Alstrynomicss thinks U6 is a much better guage of unemployment compared to the more popular U3.

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#3) On April 15, 2009 at 6:40 PM, alstry (35.40) wrote:

FOOLISH LOGIC:

Reports from the 12 regional Fed banks show that the recession deepened further through early April, but the pace of economic declines may be starting to moderate in some parts of the country.

ALSTRYNOMIC LOGIC:

As a terminal patient gets closer to death, the pace of decline starts to moderate across the patient's various systems.

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#4) On April 15, 2009 at 7:14 PM, awallejr (83.91) wrote:

So now you are doing multiple comments to your own blogs?  I suppose when you make 3 of them the same day saying the same thing you wind up being the only responding to yourself.

I honestly do think you are hoping for catastrophe.

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#5) On April 15, 2009 at 7:21 PM, alstry (35.40) wrote:

awa...

That is like telling a doctor who cares that by diagnosing his patient with a serious illness that the doctor hopes his patient dies.

Nice try though....

Plus this way it keeps my blog down down to simply a large number.

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#6) On April 15, 2009 at 11:21 PM, awallejr (83.91) wrote:

Sounds more like the doctor committing malpractice with an exaggerated misdiagnosis.  I am sure you would love to tell people "I told you so" should your "50%" unemployment call ever came to fruition.  Not even Dr. Gloom, Roubini, is anywhere near that kind of exaggeration. 

50%.  One-half. Every other worker.  Even the thought of something like that is chilling to say the least.  And something that has never ever happened in this Country's history, nor likely to since people still need food to be grown, roof over their heads and clothes on their back,  Which in turn means someone has to be working to produce, ship and sell the related goods.  So , no, I don't buy your sincerity.  You are simply the guy who enjoys carrying the sign with him saying the World is Coming to an end.

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#7) On April 16, 2009 at 8:59 AM, alstry (35.40) wrote:

You thinking simply escapes logic.....

If people can't afford to buy things.....it doesn't matter what you perceive they "need."

There are people all over the world that need lots of things that they don't get.........if people don't have access to money.....no matter what you preceive they need.....they don't get it.

Read my most recent blog.....at what rate is unemployment too much???.....your input is appreciated.

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#8) On April 16, 2009 at 11:38 AM, awallejr (83.91) wrote:

It's called supply and demand. There will ALWAYS be markets hence ALWAYS jobs.  Deflationary perhaps, and while we will never have 100% employment, and I believe full employment is defined to actually INCLUDE unemployment at 41/2%, you just aren't going to 50% unemployment.  It is nothing but ignorant exaggeration on your part and any reasonable person knows it.  As a side note, latest unemployment claims DECREASED!!!!!!!!!!!!!!!!!!!

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#9) On April 16, 2009 at 11:53 AM, alstry (35.40) wrote:

The RATE of NEW unemployment decreased.

Unemployment CLAIMS INCREASED by over 600K!!!!!!!!!!!!!!!!!!

Now what was that comment about ignorant exaggeration referring to???????

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#10) On April 16, 2009 at 1:47 PM, awallejr (83.91) wrote:

But the rate DECREASED OMG!!!!!!!!!!!

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