U.S. retail giant Best Buy said Tuesday it had laid off 400 workers from its corporate headquarters in a cost-saving plan it calls "Renew Blue."
Best Buy said it "executed ... the first phase" of an initiative announced in November by President and Chief Executive Officer Hubert Joly.
The restructuring is called "Renew Blue," after the blue shirts worn by sales associates in the retailer's outlets. No sales associates were let go in this phase of the restructuring and no stores were closed, Best Buy said.
The move is expected to save $150 million in "SG&A costs," which stands for selling, general and administrative expenses. Most of that saving is from "non-salary expenses," the company said.
"This initial reduction," which is part of a $725 million cost reduction plan, "has been achieved by enhancing the focus of the company's core business, removing management layers and eliminating operational inefficiencies," Best Buy said in a statement.