Best Buy will be cutting more than costs this holiday season with the announcement that they be engaging in some significant cost cutting. The first round of this cost cutting will naturally be in the employee area, with a forthcoming announcement that the company will be making voluntary separation packages available to the majority of its corporate employees in an effort to slash capital expenditures by close to 50 percent next year.

Sources are saying that this voluntary separation package will offer an increased incentive for employees to consider this option. If the company does not meet the employee reduction targets, then it may be forced to consider layoffs as an option.

In addition to the employee reductions, the company will slash new store opening and general expenses in most areas in an effort to realize additional savings to help the company deal with the reduction in consumer spending due to the current economic situation. The company’s latest financial results reported profits down, but revenue was up, and the company does not believe that in the immediate future this trend will continue.