Best Buy announced on Thursday that it laid off 5,000 employees this month, citing growth in online sales, reports CNN.
Technology retailer sales skyrocketed during the COVID-19 pandemic, when people bought TVs, computers and other home technologies, according to The Associated Press. From November to the end of January, Best Buy’s online sales increased 89 percent compared to the same months last year, notes the AP.
This increase in online shopping has resulted in the company prioritizing its virtual sales platform, as many stores have started to focus on sending and fulfilling online orders.
The technology retailer also said it will close more stores this year. Best Buy currently operates 1,231 stores worldwide – 500 fewer than seven years ago, according to Statista.
The 5,000 dismissed employees will be replaced by 2,000 part-time employees, reports the AP. Best Buy currently employs more than 100,000 workers, but has reduced its workforce by 17 percent from last year.