Best Buy Co. announced Thursday they will close 50 stores across the United States and cut over 400 jobs, mostly at the company's headquarters, by fiscal year 2013.

After losing $1.7 billion in their fourth quarter and seeing sales drop 2.4 percent, the company is looking to boost their profits, reported the Star Tribune. Best Buy will reduce its U.S. retail square footage by 20 percent, almost double the initial plans.

The company expects to cut expenses by $800 million over three years including $250 million in this year alone, according to the Pioneer Press.

"These changes will also help lower our overall cost structure,” CEO Brian Dunn in a statement. “We intend to invest some of these cost savings into offering new and improved customer experiences and competitive prices — which will help drive revenue."

Best Buy has pans to increase its smaller Best Buy Mobile stores in the U.S. from 300 stores to 600 to 800 stores within the next 4 years. They are also looking to expand in China.