Best Buy Lets Go of Geek Squad Field Agents Amid AI Shift

Jace Dela Cruz, Tech Times 12 April 2024, 03:04 am

Best Buy, the Minnesota-based retail giant, has opted for a significant change in its operational strategy, resulting in the layoff of Geek Squad field agents, among others, as the company transitions towards embracing artificial intelligence (AI), as reported by the Star Tribune.

This move marks the latest wave of workforce reductions within the company, aimed at optimizing resources and adapting to shifting market demands.

General Views of New York — LEVITTOWN, NEW YORK - SEPTEMBER 15: A general view of a Best Buy store on September 15, 2022, in Levittown, New York, United States. Many families, along with businesses, are suffering the effects of inflation as the economy is dictating a change in spending habits (Photo: Bruce Bennett/Getty Images)

Best Buy Lay Offs Geek Squad Field Agents

Best Buy has not disclosed the exact number of employees affected by the layoffs. However, the company has assured that impacted employees will receive severance packages, and some will be provided with opportunities for job transfers or reapplication within the organization.

The decision to downsize certain departments is part of a broader restructuring initiative outlined by Best Buy's CEO, Corie Barry, earlier this year. The initiative aims to streamline operations and align resources with evolving consumer preferences.

The rationale behind these workforce adjustments lies in Best Buy's efforts to reallocate resources towards strategically important areas for its future growth while scaling back operations in segments facing declining demand.

The company's recent financial report revealed restructuring charges amounting to $169 million for the fourth quarter, primarily attributed to employee termination benefits. Additional charges of up to $30 million are expected in fiscal 2025 as part of the ongoing restructuring plan.

Best Buy's Foray into the AI World

In line with its shift towards AI integration, Best Buy has unveiled plans to introduce a range of AI-powered virtual assistants designed to enhance customer service.

These virtual assistants, developed in collaboration with Google and Accenture, will serve various functions, including order tracking, membership assistance, and product issue troubleshooting.

Implementing AI-based solutions extends to Best Buy's customer support infrastructure, where virtual Geek Squad agents will provide real-time assistance to address technical queries and product-related issues.

Best Buy Health

While Best Buy remains committed to its core business objectives, including optimizing its Geek Squad repair operations and expanding its service offerings, the company is also exploring new avenues for growth.

One such initiative involves leveraging the expertise of Geek Squad agents to support Best Buy Health, a business segment focused on delivering medical technology solutions for in-home healthcare services.

Best Buy joins a broader trend of persistent layoffs in the tech industry since last year. Experts believe that this trend could reshape the nature of employment moving forward.

According to an expert, these layoffs foreshadow a larger decline in "thinking" jobs amid the rise of AI.