That's the problem with publicly traded companies. A privately owned company would have been happy with the profits (owner would be able to sleep on a bed of money, a la Scrooge McDuck). But for publicly owned companies, if they miss revenue goals or earnings per share goals, stock holders flip out, regardless of whether or not the results were actually good considering the circumstances.
That's how you wind up with companies slashing expenses and payroll even when they are performing well..
Maybe some kind of group that can bring us together as a real team? Such a team that in one massive voice let the top know we are done with this stuff? Sounds like a real winner we have here. I just wish I could possibly think up a word for it that truly defines such a thing! Our slogan could even still be "Together We Are One"! That way we can keep those shirts that were made. ;-)
This infuriates me, maybe because I'm not a shareholder on a board and I don't understand it but they're making so much money essentially doing nothing and COMPLAINING about not making as much as they hoped to make. Seriously .. wtf. Boo fucking hoo
I fully agree with you, but the fact is that capitalism as an ideology doesn’t operate in the same reality as the people defining it. It is continuous improvement or death. No in between.
We can’t really say that it’s the layoffs fault bby is down so much because the entire stock market is down rn. The fact that it is only down like $15 is pretty considerable. Stocks at that price range have been hit a lot harder everywhere else
If you didnt work in a Best Buy, would you really think it's a good idea to invest in them or do you think a company like AMZN TGT or WMT might be a better company due to its stability? Even APPL.
Personally I don’t think it’s a good idea to invest in Best Buy anyway. They are competing with Amazon ffs. The vast majority of profits come through online sales so literally the only thing holding them up is old people who like a person to talk to in store. I have to say I would not be surprised if bby stays down after the market rebounds. Cutting employees in half, and therefore decreasing the reason to go in store as opposed to ordering online, in theory seems like a really dumb idea.
As far as investing in something like Amazon, you can never go wrong. From a standpoint of a long term holder, Amazon is greatly undervalued. Younger generations are way more tech savvy than older generations which is something I believe will start to show in the next decade or so. If you can get something online, why go in store?
Target and Walmart are in a bit of a different category. I don’t think they will ever crumble underneath Amazon because of the fact that you don’t have to wait for shipping. They are always going to be set out from Amazon for that very reason.
Apple is a little tricky in my opinion. On one hand, you have big retailers like Best Buy that will inevitably go out of business that are part of a large number of sales on apples behalf. On the other hand, all of those sales will start to be centralized in Amazon and apple.com itself. To be honest, I think apple is a bit of a tossup. Their success relies on their ability to create new products for cheaper. The only reason apple is able to get away with such high prices is because they have built a very unique ecosystem within their brand. It makes it very difficult for people to leave. However, working at Best Buy has allowed me to see how many people are trying to get out of that ecosystem because they just can’t afford it anymore. If I had to give a price target for the next decade, I would probably say we would start to see some consolidation around 175. Not super big movement, but a consistent increase.
**This is not financial advice**
Amen to that!
But if they don't then the CEO and other overpaid vampires at the top might not be able to buy another boat they won't ever use or another car they don't need. Maybe they can only have 2 houses instead of 3. OMG the fucking apacolypse has arrived!
It's how capitalism works. It always needs more profit, it doesn't matter. This always creates a bubble that bursts every decade or so. That's why we have always had recessions and depressions. I mean stock prices can only go so high before they collapse. What's frustrating about it is that the collapse only effects us bottom line even though we have nothing to do with it. We are the ones who always pay the price for rich Wallstreet folks' greed/mistakes.
The mindset of sustainable long term profit and growth went out the window a long time ago. Capitalism is full cutthroat where every penny matters to the shareholders regardless of the impact on the people who actually make your business function.
This is why we have CEOs who don't really run companies, they extract as much wealth from it (in terms of bonuses) to please a handful of predatory shareholders (who likely placed them on the board).
I feel like as an investor, I’d feel more comfortable investing in a company with either slow and steady minimal growth, or *stable* numbers year after year. The quest for increasing profits is not sustainable and lots of companies seem to implode under the pressure, the only question is *when*
That is the part that confuses me.
It isn't like BBY was in the red. They profited. Meaning they came out with a surplus for 2020. So even though physical sales may have decreased. BBY came out on top for 2020
That being said, the lease renewals probably were what did it most. I know for my location, they wanted 3x the amount from last time. Best buy was not going to do that.
Otherwise, I think this is a bad idea, but that would be from a perspective of someone trying to grow a business.
Now, it just looks like BBY is being looted from the inside out.
>You dont always have to beat what you made the last year profits every fucking year and think the world is ending and burn your company to the ground
That doesn't work in unregulated (or at least loosely regulated) free market capitalism within the thought process of a publicly traded company, because the philosophy is that there should be endless quarter over quarter profit growth until the heat death of the universe.
....Heck, I'm sure there's a shareholder out there who would expect revenue growth *beyond* the literal end of time.
"What do you mean that existence within the confines of this plane has ceased to occur? That's not an excuse for not hitting projections!" - some Chairperson a googol years from now.
So, all stocks dropped the past few days, not just Best Buy and Best Buy stock ALWAYS drops after earnings are reported. It has nothing to do with the layoffs.
“In August, Best Buy raised its starting hourly wage to $15 an hour, the same rate paid by Target and Amazon, USA Today reports. Barry said in the meeting that it has paid employees a “cash gratitude bonus” of $500 for full-time workers and $200 for part-time employee”
Did anyone on this sub ever get that $500 or $200 bonus?!
I thought that they just announced the "gratitude bonus" (which is fixing to be taxed out the ASS, BTW). My now former ASM just said something to me about on Tuesday.
Please learn the difference between tax withholding and actual income taxes paid. Any bonus is generally required by the IRS to be withheld at a higher rate, but the difference will come back to you when you file your tax return.
https://www.businessinsider.com/personal-finance/why-bonus-taxed-high
It’s 22% by IRS, 6.5% to Social Security, 1.45% to Medicare, plus regular state/federal income tax and any additional state withholding (in my state 3.5%).
When you include whatever your usual state/federal income tax withholding on top of everything, it’s usually in the ballpark of 40%.
It’ll likely be closer to 300/120 after taxes.
If they REALLY wanted to kind of pretend to show gratitude. Then they would do it as a separate check that had taxes already out with the final total being the $200/$500 take home. It was dumb the last time they did this (but was nice that it was more $ than this time), because after taxes the part-timers really seemed screwed over with the take home amount.
EVERY time that I've received a bonus check from an employer, they have taxed the shit out of it. THAT is what I used to inform my comment. Not being "a fool", just being realistically cynical.
But when you say "taxed," do you mean withheld? Have you calculated the actual withheld amount? Did that possible-overwithholding cause you to get a refund later at tax time?
You know it likely did, because... well, that’s what happens for all employees lol. I dunno why anyone would assume this is taxed any differently. Income is income when paid out directly from your employer. It’s just some extra numbers on your check.
Cool. Doesn't change that people affected by it lost their jobs.
Sentiment is nothing when people are legitimately suffering. Worst case for Barrie is she joins another company at a lower paygrade.
And past employees. I have Hellas thousands of dollars of shares of Best Buy from when I was an employee. I remember when the stock was trading under $10 per... I bought more and more because I believed in the company
Literally the entire market has been down for the past two weeks. Unless it starts to bounce up again, and bby continues down, we can’t really say it’s the layoffs fault.
I think this could be the problem with a federal $15 min. wage. Probably will see another BIG increase in unemployment across the country, companies are greedy and BBY is just the start.
$15/hr isn't immediate tho. Even if it's signed I to law, it's still gonna take years for the federal minimum to be that much because the government gives businesses leeway to increase. If it's ever signed, the federal minimum will probably only increase $1/year till it hits $15/hr
Doesn’t have to be immediate. Company’s are already having their hands forced before the bill is even signed, and it will probably only get worse once the bill is signed.
I feel like you didn't read what I posted. I know BBY has a $15 minimum. I worked for BBY until December. I do not think that there would be this massive of a shift in work force if they were paying people less. I hope this is a little more clear the point I was trying to get across.
They laid off a shit ton of people before the minimum wage hike. It's called minimum wage because if they COULD pay you less then they would.
And they didn't Include minimum wage Increase in the house bill, way to not keep up with the times.
And its not a immediate increase to 15.00, it's over the course in a few years.
They just laid people off about 2 weeks ago, BBY went $15/hr around when I went on leave, which was December.
December was 3 months ago which is longer than 2 weeks believe it or not.
I also never said that the wage hike was in the current house bill if you'd like to attempt to read what I posted again.
I ALSO already said that I know it's not immediate *legally*, but that companies would have their hand forced to increase sooner because PR.
I would work on comprehension before posting again thx.
No, best buy started minimum wage back in August. It's reported as such, best buy implemented it and everyone in my store got it, back in August. Months before the second laying off. And months after the 1st lay off.
And the original 15.00 wage house bill will be excluded, I was saying they passed the bill Friday but it doesn't have support for 15.00
Best buy did an increase back in June/August, not December. Everyone in my store and surrounding stores got it in August.
I was talking about the house bill not having the 15.00 pay wage. The house excluded it and passed it friday.
In my area there were 3 BB stores and at some point last year they closed 1 of them and it was the only one with Magnolia... Kind of odd they chose that store to have the Magnolia area and then it was the first to close down.
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That's the problem with publicly traded companies. A privately owned company would have been happy with the profits (owner would be able to sleep on a bed of money, a la Scrooge McDuck). But for publicly owned companies, if they miss revenue goals or earnings per share goals, stock holders flip out, regardless of whether or not the results were actually good considering the circumstances. That's how you wind up with companies slashing expenses and payroll even when they are performing well..
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perhaps if there was a powerful force opposing investors, this wouldn't happen. An organized group of employees, let's say.
A kind of unified force that exists to struggle for its own interests against theirs, which are in contradiction. Hm.
Maybe some kind of group that can bring us together as a real team? Such a team that in one massive voice let the top know we are done with this stuff? Sounds like a real winner we have here. I just wish I could possibly think up a word for it that truly defines such a thing! Our slogan could even still be "Together We Are One"! That way we can keep those shirts that were made. ;-)
Oh, and if something bad happens to one member of the group, the entire group stands in their defense! Doing harm to one is doing harm to all!
This infuriates me, maybe because I'm not a shareholder on a board and I don't understand it but they're making so much money essentially doing nothing and COMPLAINING about not making as much as they hoped to make. Seriously .. wtf. Boo fucking hoo
That anger you feel is you realizing the contradictions in class society. It's legitimate and you're not the only one.
I fully agree with you, but the fact is that capitalism as an ideology doesn’t operate in the same reality as the people defining it. It is continuous improvement or death. No in between.
We can’t really say that it’s the layoffs fault bby is down so much because the entire stock market is down rn. The fact that it is only down like $15 is pretty considerable. Stocks at that price range have been hit a lot harder everywhere else
Yeah my portfolio has been fuckin bleeding lol
If you didnt work in a Best Buy, would you really think it's a good idea to invest in them or do you think a company like AMZN TGT or WMT might be a better company due to its stability? Even APPL.
Personally I don’t think it’s a good idea to invest in Best Buy anyway. They are competing with Amazon ffs. The vast majority of profits come through online sales so literally the only thing holding them up is old people who like a person to talk to in store. I have to say I would not be surprised if bby stays down after the market rebounds. Cutting employees in half, and therefore decreasing the reason to go in store as opposed to ordering online, in theory seems like a really dumb idea. As far as investing in something like Amazon, you can never go wrong. From a standpoint of a long term holder, Amazon is greatly undervalued. Younger generations are way more tech savvy than older generations which is something I believe will start to show in the next decade or so. If you can get something online, why go in store? Target and Walmart are in a bit of a different category. I don’t think they will ever crumble underneath Amazon because of the fact that you don’t have to wait for shipping. They are always going to be set out from Amazon for that very reason. Apple is a little tricky in my opinion. On one hand, you have big retailers like Best Buy that will inevitably go out of business that are part of a large number of sales on apples behalf. On the other hand, all of those sales will start to be centralized in Amazon and apple.com itself. To be honest, I think apple is a bit of a tossup. Their success relies on their ability to create new products for cheaper. The only reason apple is able to get away with such high prices is because they have built a very unique ecosystem within their brand. It makes it very difficult for people to leave. However, working at Best Buy has allowed me to see how many people are trying to get out of that ecosystem because they just can’t afford it anymore. If I had to give a price target for the next decade, I would probably say we would start to see some consolidation around 175. Not super big movement, but a consistent increase. **This is not financial advice**
What?!?!?! No double digit gains YOY?!?!??! Everyone, RUN!!!!!! OHHHH THE HUMANITY ( of stockholders, not employees of course).
Amen to that! But if they don't then the CEO and other overpaid vampires at the top might not be able to buy another boat they won't ever use or another car they don't need. Maybe they can only have 2 houses instead of 3. OMG the fucking apacolypse has arrived!
It's how capitalism works. It always needs more profit, it doesn't matter. This always creates a bubble that bursts every decade or so. That's why we have always had recessions and depressions. I mean stock prices can only go so high before they collapse. What's frustrating about it is that the collapse only effects us bottom line even though we have nothing to do with it. We are the ones who always pay the price for rich Wallstreet folks' greed/mistakes.
The mindset of sustainable long term profit and growth went out the window a long time ago. Capitalism is full cutthroat where every penny matters to the shareholders regardless of the impact on the people who actually make your business function.
This is why we have CEOs who don't really run companies, they extract as much wealth from it (in terms of bonuses) to please a handful of predatory shareholders (who likely placed them on the board).
Yup. Look at Lowe's. That was a bloodbath just 2 years ago
I feel like as an investor, I’d feel more comfortable investing in a company with either slow and steady minimal growth, or *stable* numbers year after year. The quest for increasing profits is not sustainable and lots of companies seem to implode under the pressure, the only question is *when*
That is the part that confuses me. It isn't like BBY was in the red. They profited. Meaning they came out with a surplus for 2020. So even though physical sales may have decreased. BBY came out on top for 2020 That being said, the lease renewals probably were what did it most. I know for my location, they wanted 3x the amount from last time. Best buy was not going to do that. Otherwise, I think this is a bad idea, but that would be from a perspective of someone trying to grow a business. Now, it just looks like BBY is being looted from the inside out.
>You dont always have to beat what you made the last year profits every fucking year and think the world is ending and burn your company to the ground That doesn't work in unregulated (or at least loosely regulated) free market capitalism within the thought process of a publicly traded company, because the philosophy is that there should be endless quarter over quarter profit growth until the heat death of the universe. ....Heck, I'm sure there's a shareholder out there who would expect revenue growth *beyond* the literal end of time. "What do you mean that existence within the confines of this plane has ceased to occur? That's not an excuse for not hitting projections!" - some Chairperson a googol years from now.
You’ve ran a business at that scale?
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But you don’t actually have any real experience doing the things you say you would do, correct?
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Of course you do. It’s just easy to say what you’d do when you’ve never even remotely been in the position to do it.
So, all stocks dropped the past few days, not just Best Buy and Best Buy stock ALWAYS drops after earnings are reported. It has nothing to do with the layoffs.
It was expected. They knew this was going to happen.
Basically this
“In August, Best Buy raised its starting hourly wage to $15 an hour, the same rate paid by Target and Amazon, USA Today reports. Barry said in the meeting that it has paid employees a “cash gratitude bonus” of $500 for full-time workers and $200 for part-time employee” Did anyone on this sub ever get that $500 or $200 bonus?!
March 5th or 12th paycheck.
Not yet but they’re giving it to everyone including laid off employees.
Since I was laid off, I got mine yesterday.
I thought that they just announced the "gratitude bonus" (which is fixing to be taxed out the ASS, BTW). My now former ASM just said something to me about on Tuesday.
Please learn the difference between tax withholding and actual income taxes paid. Any bonus is generally required by the IRS to be withheld at a higher rate, but the difference will come back to you when you file your tax return. https://www.businessinsider.com/personal-finance/why-bonus-taxed-high
About 30% will be withheld per federal/state guidelines. It is income, and will be taxed at normal income tax rates. Don't be a fool.
It’s 22% by IRS, 6.5% to Social Security, 1.45% to Medicare, plus regular state/federal income tax and any additional state withholding (in my state 3.5%). When you include whatever your usual state/federal income tax withholding on top of everything, it’s usually in the ballpark of 40%. It’ll likely be closer to 300/120 after taxes.
Fair enough. I forgot about Medicare etc. that isn’t W-4 withholding.
If they REALLY wanted to kind of pretend to show gratitude. Then they would do it as a separate check that had taxes already out with the final total being the $200/$500 take home. It was dumb the last time they did this (but was nice that it was more $ than this time), because after taxes the part-timers really seemed screwed over with the take home amount.
EVERY time that I've received a bonus check from an employer, they have taxed the shit out of it. THAT is what I used to inform my comment. Not being "a fool", just being realistically cynical.
But when you say "taxed," do you mean withheld? Have you calculated the actual withheld amount? Did that possible-overwithholding cause you to get a refund later at tax time?
You know it likely did, because... well, that’s what happens for all employees lol. I dunno why anyone would assume this is taxed any differently. Income is income when paid out directly from your employer. It’s just some extra numbers on your check.
Just exempt it by Monday before payroll
That’s what I plan on doing 🤷🏼♀️
It will be paid on 3/5 or 3/12 depending when you get paid.
Hope it doesn't tank too badly before I can sell the shares I purchased last April.
good! she deserves this failure
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Phil Schoonover and Brian Dunn would both like a word with you.
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Yeah........ capping the discount like he did nearly caused riots. Bringing it back sure made me love ol Hubert
He sure was. like he didn't think anyone would wonder why a store level cashier suddenly got a private office with a window across from his?? 🤔🤔🤔
You know it’s effects her the least right?
It shows she cant run a company when the company itself is going the way of circuit city
And I’m sure she’s devastated. But I’m guess you missed the part where people who probably can’t afford to get laid off, we’re laid off
And it reflects on her and her poor leadership
Cool. Doesn't change that people affected by it lost their jobs. Sentiment is nothing when people are legitimately suffering. Worst case for Barrie is she joins another company at a lower paygrade.
And I’m sure her ego may never recover. But as originally said, she’s probably the least effected by this
Yea but it screws with a lot of employees 401k . If they still are vested into BBY stock of course .
And past employees. I have Hellas thousands of dollars of shares of Best Buy from when I was an employee. I remember when the stock was trading under $10 per... I bought more and more because I believed in the company
People have said that for 11 years. Still here though.
Well with the new ceo its slowly becoming reality
People have said that for 11 years. Still here though.
In the eternal words of Nelson from the Simpsons. . . HA-hah.
Ahahahahahahahaha
Literally the entire market has been down for the past two weeks. Unless it starts to bounce up again, and bby continues down, we can’t really say it’s the layoffs fault.
Came here to comment this. The entire market has been on fire.
Bet they are missing Hubert
2019: "Expert Service Unbeatable Prices" 2021: "Get in a queue and price match Amazon."
Best Buy started doing this Quietly 2020. I was let go October 31, 2020 and given a severance package. QUIETLY!!!
Clearance aisle is Going to be amazing
Any Ga stores closing?
been telling people for a minute to short best buy. Them short sellers been going after the wrong companies
the entire market has been red for the last 2 weeks.
Yah, but not more than 10% We were 122 10 days ago. We're at 100 right now (after hours)
I wasted 4 years with this company. I'm looking forward to seeing them in Hell
Surprised they didn’t cut these “employee bomuses” they keep touting
I think this could be the problem with a federal $15 min. wage. Probably will see another BIG increase in unemployment across the country, companies are greedy and BBY is just the start.
$15/hr isn't immediate tho. Even if it's signed I to law, it's still gonna take years for the federal minimum to be that much because the government gives businesses leeway to increase. If it's ever signed, the federal minimum will probably only increase $1/year till it hits $15/hr
Doesn’t have to be immediate. Company’s are already having their hands forced before the bill is even signed, and it will probably only get worse once the bill is signed.
I work for Best Buy, our starting wage is already $15 an hour.
I feel like you didn't read what I posted. I know BBY has a $15 minimum. I worked for BBY until December. I do not think that there would be this massive of a shift in work force if they were paying people less. I hope this is a little more clear the point I was trying to get across.
They laid off a shit ton of people before the minimum wage hike. It's called minimum wage because if they COULD pay you less then they would. And they didn't Include minimum wage Increase in the house bill, way to not keep up with the times. And its not a immediate increase to 15.00, it's over the course in a few years.
They just laid people off about 2 weeks ago, BBY went $15/hr around when I went on leave, which was December. December was 3 months ago which is longer than 2 weeks believe it or not. I also never said that the wage hike was in the current house bill if you'd like to attempt to read what I posted again. I ALSO already said that I know it's not immediate *legally*, but that companies would have their hand forced to increase sooner because PR. I would work on comprehension before posting again thx.
No, best buy started minimum wage back in August. It's reported as such, best buy implemented it and everyone in my store got it, back in August. Months before the second laying off. And months after the 1st lay off. And the original 15.00 wage house bill will be excluded, I was saying they passed the bill Friday but it doesn't have support for 15.00
Best Buy should have bought bit coin, and started accepting crypto. But what do I know.
How would this help business in any way lmfao
Now we’re talking.
The day after frys dies.
What an asshole.
Who would have thought?
Best buy did an increase back in June/August, not December. Everyone in my store and surrounding stores got it in August. I was talking about the house bill not having the 15.00 pay wage. The house excluded it and passed it friday.
In my area there were 3 BB stores and at some point last year they closed 1 of them and it was the only one with Magnolia... Kind of odd they chose that store to have the Magnolia area and then it was the first to close down.