Dixons Carphone has said it will axe 2,900 jobs under plans to close all 531 of its standalone Carphone Warehouse stores.The retailer described the move as the “next step in its transformation” as it joins its UK mobile operations with the wider business. In a statement, it said the move was due to the change…
Dixons Carphone has said it will axe 2,900 jobs under plans to close all 531 of its standalone Carphone Warehouse stores.
The retailer described the move as the “next step in its transformation” as it joins its UK mobile operations with the wider business.
In a statement, it said the move was due to the change in how customers buy their mobile devices, connectivity and technology.
After the standalone stores are closed on 3 April, the company will focus on its 305 Currys PCWorld stores and online.
It is expected that 40% of employees will be able to get new roles within the company but around 2,900 will be made redundant.
Dixons Carphone said it would “go well beyond legal obligations in financial and other support for all affected colleagues”.
Group chief executive Alex Baldock said: “Today’s tough decision is an essential part of that, the next step in making our UK mobile business a success for customers, colleagues and other shareholders.
“Clearly, with unsustainable losses of £90m expected this year, mobile is currently holding back the whole business.
“There’s never an easy time for an announcement like this, but the turbulent times ahead only underline the importance of acting now.”
He added: “I don’t underestimate how upsetting this news will be for our colleagues, and we’ll treat everyone with honesty, respect and care.
“Customers are increasingly heading, not just to our large and growing online business, but into our big stores, where they can find all the experts and tech – mobiles, computers, TVs, smart tech, appliances, gaming and all the rest – they need.
“But they can’t find all this in the small mobile-only stores that are one twentieth of the size; they’re visiting these less and these stores are losing more money as a result.
“That’s why we’re committed to our more than 300 big stores around the UK, why we’re investing tens of millions of pounds in them and in the thousands of expert colleagues who work in them. But it’s also why sadly we have to close the small stores.”
Sky’s City editor Mark Kleinman said: “Dixons Carphone has been saying for some time that its mobile business is unprofitable…so these 531 stores have become a financial burden on Dixons Carphone’s business.
“This is a body blow to those thousands of workers at Dixons Carphone and the timing, coming amid the COVID-19 crisis, is providing large companies with an opportunity to undertake big restructuring programmes that were potentially very difficult to communicate to staff.
“The disruption being caused to the economy by the coronavirus outbreak means some are choosing to announce redundancy and restructuring programmes like this at this time.”
The changes do not affect the 70 Carphone Warehouse stores in the Republic of Ireland or the company’s operations overseas.