UK mobile company slashes 2,900 jobs, shuts 531 outlets due to coronavirus

Dixons Carphone Plc, the British telecommunication retailer, reportedly announced that it will shut down all of its 531-standalone mobile-phone stores, slashing nearly 2,900 jobs due to the ongoing coronavirus pandemic. The retailer declared that the warehouse outlets will shut effective April 3 and the company will focus on stores inside the Currys PC World and its online sales. 

The group chief executive, Alex Baldock, said in a press conference that the move served as the next step in making the UK mobile business successful for customers, colleagues and other shareholders. He indicated the market meltdown due to the coronavirus. 

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The retailer said in a statement that at least 40 per cent of its employees will be assigned new job roles internally, there would be an estimated 2,900 will be fired. It grieved that it wasn’t an easy time for businesses at present, but turbulent times ahead underline the importance of acting now. Dixons claimed that the announcement was made in a bid to ensure the business was fit in the future. 

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Paying enhanced bonuses

As per reports, Baldock promised support to the employees who would be asked to leave. He mentioned paying enhanced redundancy bonuses and assistance in searching for employment. He agreed this was the drastic measure but said that the retailers absolutely had to do this, it was necessary, he added.  

Reports confirm that Dixons now have the option to focus on selling mobile devices through Carphone Warehouse “shop-in-shops” and online due to battered shopping trends and disappearing customers. The company was created through a merger of electronics retailer Dixons and the Carphone Warehouse mobile chain in the year 2014 and hadn’t changed outlook since then as per the media reports. The retailers, however, are now preparing for the coronavirus impact. 
 

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