On Saturday, Best Buy announced that it is expected to close 50 of its stores this current year. The company, in its press release, further stated that three additional locations would close later this summer.
By May 12, most of the stores are scheduled to permanently close. The closures and lay-off plans indicate the company’s next step in the embattled electronics chain’s effort to stay afloat in the competitive industry.
Over the past years, Best Buy has faced difficulties when it comes to their sales, particularly in their pricey items such as electronic appliances and more. Many of the company’s customers turn to Amazon.com and stores like Target or Costco to save on huge ticketed items. Best Buy is striving hard to avoid the fate of its former competitor, Circuit City, which in 2009 filed for bankruptcy and then permanently closed all of its retail stores.
Around 400 corporate workers will be affected by the company’s lay-off plan. However, Best Buy said that the plan aims to cut cost and then use the money they can save from the said cost-cutting measures in opening 100 smaller Best Buy mobile stores in the future.
Although the company’ announcement came as the worst news that the hundreds of affected workers ever had, the company compromises for sure job positions to the laid off workers once it open its news stores.
When the said lay-off plan takes place, employees should be aware about their legal rights under the employment law even after being terminated. Employees’ rights include separation pay, unemployment benefits, continued health coverage, and others.
Meanwhile, in some instances, employees may also have the right to negotiate their separation pay in order to get the best deal for their termination. However, when an employee’s termination is part of a mass lay-off, oftentimes, it is usually harder to negotiate separation pay. Therefore, having someone, like employment law attorneys, to provide you with sufficient information regarding employment law and legal advice is a good option.
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