Dixons job cuts:
DIXONS CARPHONE is to slash 800 jobs amid a tidal wave of retail cuts as the bombed-out high street fights for survival.
The firm is axing the store manager roles in an attempt to slim down and save cash. It comes just four months after Dixons said all its 531 standalone Carphone Warehouse shops would shut, leading to 2,900 job losses. About 3pc of the company’s overall workforce in the UK and Ireland will be affected by the redundancies. Bosses want to overhaul the way their shops are run to have more staff working across both electricals and mobile.
The company said that some laid-off workers may be able to get a job with ShopLive, a personal shopping service which allows Dixons customers to browse goods from their home using a video link to stores.
Mark Allsop, chief operating officer, said: “We remain committed to our stores as part of an omnichannel future, where we offer the best of online and stores to our customers.”
Its decision to pull the plug on Carphone Warehouse came after years of losses at the mobile phone division, which it is now trying to better integrate into its Currys PC World stores. Fewer customers have been renewing their phones and demand for mobile contracts is down.
Dixons Carphone shares have fallen more than 80pc in the past five years but closed up 6.5pc at 79.4p, valuing the company at £925m.
The job cuts at Dixons are the latest blow to the high street after lockdown turbo-charged the drift towards online shopping. Drastic job cuts have been unveiled by retailers including John Lewis, Marks & Spencer, Debenhams and Sir Philip Green’s retail group Arcadia.
In July, the business warned the pandemic would delay the return of the loss-making phone business to profitability, but most of its products have been selling in lockdown as consumers move online to purchase large-screen TVs, and computing and gaming equipment. It reported underlying pre-tax profits of £166m for the year to May, compared with £339m for the previous year.
On a statutory basis, it posted narrowing pre-tax losses of £140m, down from losses of £259m the year before.
Alex Baldock, the chief executive, who joined in 2018, is trying to turn its fortunes around.