In its quest to squeeze out more operating efficiencies, Best Buy is now planning to reduce the size of its Geek Squad labor force. Is this a smart decision?

For many years, Best Buy has offered its Geek Squad services — even setting up a separate business for these services and generating hundreds of millions of dollars in revenues. As its Web site notes (click the icon to visit the site): “Geek Squad is the first national 24-hour task force dedicated to solving the world’s technology challenges. Comprised of highly skilled and specially trained computing agents, home entertainment installers (GSIs), autotechs, and appliance repairers (GSRs), 20,000 active Geek Squad technicians patrol Geek Squad precincts in all U.S. Best Buy stores, at Geek Squad stand-alone U.S. store locations, and at service centers nationwide.”

The company has decided to cut the number of Geek Squaders by 650 (3.25 percent). As Joan Solsman reports in the Wall Street Journal: “Matthew Furman, senior vice-president of communications and public affairs [at Best Buy], said the staff’s reduction comes amid efforts to realign workers across all service channels. ‘We recently made some adjustments to position our talent where we’re seeing growth and give our agents the opportunity to serve customers best,’ he said. Michael Pachter, an analyst at Wedbush Securities, said because Best Buy doesn’t have an advantage on products or pricing, ‘the only real differentiator is that they have service, that service is installation and advice, and that’s what Geek Squad does.'” Click here for the full WSJ story.