Nearly 3,000 jobs are to be cut at Carphone Warehouse, as the company plans to close down its 531 standalone stores, which is a move unrelated to COVID-19.
On the 03/04/20, 2,900 redundancies will be made due to the mobile market changing. The 305 stores it has located in larger PC World and Currys stores will not be affected by the changes. This announcement was made by parent company Dixons Carphone.
However, 1,800 of the 2,900 staff are expected to take new positions within the business.
Alex Baldock, group chief executive of Carphone Warehouse said:
They can’t find all this in the small mobile-only stores that are one-twentieth of the size; they’re visiting these less and these stores are losing more money as a result.
I don’t underestimate how upsetting this news will be for our colleagues, and we’ll treat everyone with honesty, respect and care.
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.
Kester Mann, from market researchers CCS Insight said:
Carphone Warehouse has been caught in the unfortunate crosshairs of lengthening mobile phone replacement cycles and ongoing apathy on the UK High Street.
It has been clear for some time that something had to give in its business. A greater focus on online sales is a logical move.
With more than twice as many people expected to keep their current mobile phone for longer than their last one, footfall has declined and mobile phone retailing is tougher than ever. Carphone Warehouse had no option but to make some major changes.
The aim of this move is to help the business, which is predicted to lose £90 million this year.