UK mobile retailer Dixons Carphone announced on Tuesday it would shut down 531 standalone shops and slash 2,900 jobs in a bid to restructure the company amid heavy sustained losses.
There was "never an easy time" for such announcements, but that "turbulent times ahead" showed the importance of acting quickly to "ensure a business fit for the future", the company said in a statement.
“The business expects almost 40 per cent (1,800) of affected colleagues to take new roles internally, but sadly expects 2,900 redundancies," the company added.
Stores will close on 3 April, but larger ones will remain in Currys PCWorlds locations as well as online.
— Dixons Carphone plc (@DixonsCarphone) March 17, 2020
Alex Baldock, Group chief executive for Dixons Carphone, Carphone Warehouse's parent company, said that customers were "changing how they buy technology" and that the company needed to "change with them".
According to Mr Baldock, the group expected "unsustainable" losses of £90m pounds in 2020 and would work to help 40 percent of employees affected to find new roles along with financial support for staff it could not retain.
"But though this is by far the toughest decision we’ve had to make, it is necessary. We must follow our customers. They want help with all technology, all in one place, and this trend is only going to accelerate in a more connected 5G world," he added.
“I do not underestimate how upsetting this news will be for our colleagues,” he concluded.
— BBC Radio 5 Live (@bbc5live) March 17, 2020
Despite other companies stating that sales were impacted by the coronavirus outbreak, the company said that trading had "not been impacted materially" but were instead "monitoring the situation closely".
The announcement comes after revenues for the company fell 20 percent in June last year, with Baldcock issuing profits warnings for the second time since April 2018.
The UK Financial Conduct Authority also slapped Carphone Warehouse with a £29.1m fine after it was leaked that its Geek Squad division had been miss-selling insurance policies to customers, totalling over £444,7m between 2008 and 2015.