Will front-line demotions and pay cuts lead to worse service at Best Buy?

Best Buy has notified store employees that it plans to eliminate higher-paying assistant manager positions and cut pay for senior sales staff by as much as 25 percent to 50 percent, the Star Tribune reports.

The retailer hasn’t confirmed the numbers, but one analyst said based on conversations with employees, the reorganization will affect as many as 1,000 assistant managers and another 8,000 senior sales associates.

Analysts are comparing it to Circuit City decision a couple years ago to get rid of many of its highest-paid and most-experienced sales people. Service tanked, and that might have quickened Circuit City’s demise, some analysts argued.