As was reported in the Rumour Mill Forum a few days ago it seems to be confirmed by a report in the Times that DSG is to shed up to 400 jobs at its head office. There are no reports of further cuts at present.
The new chief executive of DSG International (Currys, Dixons, PC World, Pixmania) is expected to cut 400 head office jobs as part of a shake-up this week.
John Browett, who joined DSG from Tesco in December, is likely to announce that nearly one in four roles are to go as he transforms the group. No doubt in reaction to shares figures and changes in the global economy.
Most of the cutbacks are reported by Retail Week to come as Mr Browett eliminates back-office duplication across the retailer’s Currys and PC World chains, in fields such as finance and supply.
One employee has told The Times that redundancy notices were being served earlier today and that a spokesperson has refused to comment.
Analysts believe that Mr Browett could also announce the closure of up to 200 under-performing stores on Thursday as he looks to revive a business facing fierce competition from the supermarkets, online rivals and Best Buy, the US group that bought half of Carphone Warehouse’s retail chain last week. Which confirms rumours that we’ve been hearing in the trade about stores being closed as a cost-cutting exercise however there is no detail on which stores as yet.
It is expected that there will be a transfer more business online and run some PC World and Currys stores under one roof.
DSG has issued two profit warnings this year, the first in January, just days after Mr Browett had joined.
PC World has borne the brunt of the economic slowdown with analysts criticising the product ranges and the format.
DSG has also suffered from mixed fortunes in its international division, which generates 40 per cent of group revenue.
Last month Mr Browett announced that 40 of DSG’s 150 Italian stores would be closed over the next two years.
Shares in DSG rose more than 6 per cent, or 4.5p to 75p, yesterday in a rally investors put down to the rumours of a potential bid from Best Buy and the hope of cost-savings in the recovery plan.