Carphone Warehouse to shed 3,000 jobs

Dixons Carphone is to shut all its 531 mobile-only shops to shed nearly 3,000 jobs.

The decision is a U-turn after the company said closure was not on the agenda during a turnaround strategy.

Chief Executive Alex Baldock said at the time:

“We are not sitting here with any major plans to close a load more stores. We like stores.”

However, the company now admits customers’ shopping habits were changing “very fast and we have to change with them”.

Mr Baldock said smaller, mobile-only sites have been losing more and more money.

He said fewer shoppers were upgrading devices or opting for less profitable, SIM-only deals.

Carphone Warehouse shops will close on April 3rd.

It’s hoped 1,800 staff can be deployed to other stores but 2,900 will be made redundant.

Mr Baldock said: “Even though it’s a very tough decision, it is right for the long-term.

“It is an exceptionally difficult day for our colleagues. It’s a painful and difficult day for the business.”

The company said: “We will help them find new jobs through an outplacement programme.

“We recognise our responsibilities towards our colleagues and communities, and intend to fulfil them.”

Zoe Mills, a retail analyst at GlobalData, said:

“After a number of years of double digit declines in its mobile business, Dixons Carphone’s decision is a necessary step to protect profits and adjust to the changing dynamic of the mobile phone market.”

 


About the Author

Philip Braund spent 16 years at the Daily Mirror as a reporter and news editor before moving to ITV. He was the series producer of the ground-breaking investigation programme The Cook Report, Managing Editor at ITV's Millbank Studios, and Head of News at ITV Central. He has won national and regional Royal Television Society awards for documentaries.



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