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Best Buy CEO Out

Best Buy lost $1.7 billion last quarter on revenues up 3.4% to $16.6 billion although sales overall fell 2.4%

Best Buy CEO Brian Dunn resigned Tuesday shortly after announcing an $800 million cost-saving plan designed to shore up the Internet-racked brick-and-mortar electronics retailer by lowering its operating costs.

The idea is to close 50 stores and lay off 400 employees. It figures to open hundreds of small shops selling mobile phones in a belated response to Apple stores and the shops carriers have set up.

Best Buy lost $1.7 billion last quarter on revenues up 3.4% to $16.6 billion although sales overall fell 2.4% - despite a 21% increase in online sales - because consumers snubbed laptops and TVs. Its stock is in the gutter.

The company, roundly criticized for its customer service (oh, brother, yeah), issued a statement saying, "There were no disagreements between Mr. Dunn and the company on any matter relating to operations, financial controls, policies or procedures. There was mutual agreement that it was time for new leadership to address the challenges that face the company."

They're going to have to find this savior. Meanwhile, it has tapped G. Mike Mikan, a director at Best Buy since 2008, to serve as interim CEO. He used to be CFO of UnitedHealth Group and CEO of Optum, a healthcare services firm affiliated with UnitedHealth.

Dunn was named CEO in 2009.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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