APRIL 15, 2009 • Employees with Best Buy were notified that the retailer was planning significant pay cuts and/or staff reductions. After conversations Best Buy, Investment firm Sanford Bernstein estimated as many as 1,000 assistant managers may lose their jobs in the latest cost trimming, and as many as 8,000 senior store associates will be demoted to regular sales associates – incurring a 20% to 50% pay cut.

Impact: While having a job is better than having no job at all, disenfranchising your most experienced and capable sales staff generally results in broad negatives. When sales of the dizzying procession of new electronic devices are dependent upon retail staff educating consumers, taking away their incentive for selling well often significantly reduces the very sales retailers and electronics makers need to stay afloat.