High-end cuts rumoured at DSGi

Advanced Solutions arm refuses to comment on cutbacks

Insiders have claimed that senior roles are among those under threat.

Dixons Store Group International (DSGi) Business is staying tight-lipped about rumours that it is making cutbacks at its recently launched Advanced Solutions division.

DSGi Business recently told about 50 of its 800 staff that their jobs were under threat as it responds to challenging market conditions (Channelweb, 28 August).

Insiders claim senior roles at the high-end Advanced Solutions arm, which was only launched in February, could be among those under threat as the reseller looks to return to its volume roots.

DSGi Business had pledged to grow the unit’s headcount from 60 to 100 within a year to conquer the mid-market and enterprise space.

The speculation comes as parent DSGi unveiled a lacklustre trading statement for the 16 weeks to 23 August. Like-for-like UK PC sales were down 12 per cent, sparking a five per cent slump in its share price.

One source, who wished to remain anonymous, said: “DSGi is getting back to basics given the economic climate and is looking at its core competencies. For DSGi Business, this means selling product.”

DSGi refused to comment further.