Best Buy to cut wages and jobs

US consumer electronics and games retail chain Best Buy has revealed the nature of its cost-cutting plans which it hopes will see it through a tricky economic period.

Unlike rival GameStop, Best Buy has shown signs of suffering due to weaker consumer spending, and plans to slash up to 1000 assistant store manager roles, while as many as 8000 senior sales staff could be demoted and face wage cuts of 25-50 per cent, reports StarTribune, citing estimates in a report from New York investment firm Sanford Bernstein.

The chain announced last month that it was planning to create 1000 new jobs in the UK as it moves further into the region via its joint venture with the Carphone Warehouse, although that activity has been pushed back from its original planned date until next year.

Best Buy's share price fell yesterday by 0.71 per cent to USD 37.83.