Best Buy plans to close 50 stores in the U.S. this year to help trim costs by $800 million by 2015.
The company reported this week it will also cut 400 jobs at its Minneapolis headquarters, and it will focus on smaller format stores. It plans to open 100 of the smaller Best Buy Mobile stores during this fiscal year.
Best Buy estimates it will trim $300 million in expenses from the store closures and another $300 million in corporate layoffs.
Forbes says the downsizing met with approval from analysts. “Right or wrong, at least Best Buy is doing something. Sometimes the bigger thing to do is go small, but a retailer still has to sell more stuff, not just jettison the people and locations that are supposed to help it do just that,” wrote Forbes.