Restructure at DSG results in 400 job losses

It is believed that DSG International, the electricals group, is to axe approximately 400 staff at its headquarters as part of a strategic shake-up of the business.

Chief executive, John Browett, is likely to announce that almost one in four jobs are to go as he looks set to reshape the group.

According to Retail Week, Mr Browett is set to eliminate back-office duplication across the retailer’s Currys and PC World chains.

Analysts also believe that Mr Browett, who joined DSG last December, is set to announce the closure of up to 200 stores which are under-performing.

The business is facing harsh competition from online stores and supermarkets.

Last month, it was confirmed that over the next 2 years, 40 of DSG’s 150 Italian stores are to close.

It is also expected that Mr Browett will transfer more business online and run some PC World and Currys stores under one roof.

In an attempt to free up money for investment in the business, the shareholder dividend could be cut by as much as 50%.

The company has issued two profit warnings this year, the first in January. PC World has borne the brunt of the economic slowdown with analysts criticising the product ranges and the format.

Shares in the company rose yesterday after speculation that Best Buy Co. may seek European bid targets after partnering with Carphone Warehouse Group Plc.

Eight months ago, shares in DSG were trading at 150p, yesterday the shares were at 75p.

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