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DSGi to cut 400 head office jobs

Coming together: the retailer may run more of its Currys and PC World stores under one roof

Coming together: the retailer may run more of its Currys and PC World stores under one roof

Electricals group DSGi is poised to axe as many as 400 head office staff, as chief executive John Browett reshapes the business to put it on the road to recovery.

Browett will confirm a headquarters restructuring on Thursday, when he unveils findings of his strategic review, but the process is unlikely to be concluded until the end of this month while affected staff are consulted.

It is understood that between 20 and 25 per cent of the 1,700 staff at DSGi's head office – which the store group calls its "retail support centre" – will be culled.

Browett intends to deliver efficiencies by eliminating back-office duplication across the retailer's flagship Currys and PC World chains, in fields such as finance and supply chain and thereby deliver group efficiencies.

A DSGi spokesman declined to comment on "speculation" and said the retailer looked forward to Thursday's announcement.

Since joining DSGi last December, when the business was already mired in difficulties, Browett has been working on a recovery programme. The task has become more urgent following two profit warnings this year.

Analysts believe he may close up to 200 shops, shift more business online and run more PC World and Currys stores under one roof.

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Reader Response

Added: Tuesday, 13 May 2008 13:00 BST
Ian Stewart, Swadlincote, United Kingdom

Absolutely agree with Ian Middleton when will multi national retailers realise this and really start to perform!

Exactly the same is happenning in my old company the staff are all demoralised but a key executive is in line for a very big payout if they deliver the results.

For staff these days its a case of "If you dont like the heat get out of the kitchen"


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Added: Tuesday, 13 May 2008 00:52 BST
Ian Middleton, Kidlington, United Kingdom

If my experiences at both PC World and Currys are anything like the general rule I'm not surprised that they're running into problems. Both stores have a deserved reputation for unhelpful and surly staff which was reinforced for me by a visit to Currys in Oxford this weekend. Perhaps this might be more of a focal point when the axe finishes falling. Staff are the most important asset to a retailer and if they are not properly rewarded and motivated it doesn't matter how many you sack. Its those you have left that are the key to your store's future sucess and if this lesson isn't learnt by DSGi then I don't see any reason to expect an improvement.


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