Today, Best Buy announced plans to lay off 250 workers at its corporate headquarters in Richfield, Minnesota. Conversely, the retailer is adding 210 new corporate positions, yielding a net loss of 40 employees. Following a difficult third quarter, with a 77% drop in profits, Best Buy is hoping that these fresh layoffs will enable it to weather the current downturn in consumer spending.

On paper, this should be a great time for Best Buy. Following the January 16th demise of Circuit City, the big blue box store was the last man left standing, and analysts were quick to predict a 7% bump in sales. The general wisdom held that approximately 30% of Circuit City's $7.5 billion in annual sales would soon be flowing through Best Buy's doors, a figure that moved William Blair to raise the company's earnings target from $2 to $2.55.

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In the short term, however, Best Buy is facing hard times. In December, amid declining same-store sales, the company offered a voluntary severance package to 4,000 of its corporate employees. The plan was quite generous, granting 7.5 months of severance pay, and one year of health care, life insurance, and outplacement service. While 500 employees, or 12.5% of the company's workforce, took advantage of the offer, the reduction wasn't sufficient to offset the company's predicted revenue losses in 2009. The employees laid off in today's cuts will receive a comparable package, with six months of severance and a year of health care and life insurance. They will also be eligible to apply for the company's 210 new positions.