Argos moves into the Jungle.com.

Job cuts expected as e-reseller is integrated into retail group

E-reseller Jungle.com is to be integrated into Argos Retail Group (ARG) in a bid to cut costs.

Although job cuts are expected, parent company Great Universal Stores (GUS) remained tight-lipped about the number of jobs that will be lost.

Staff were informed last week of the move, and are in a 90-day consultation period with management.

Jungle.com, which GUS bought for £37m in September 2000, will be managed from Argos's offices in Milton Keynes. Jungle's Solihull support office has also been closed down.

In a statement, Terry Duddy, chief executive of ARG, said: "We regret the potential loss of jobs, but by integrating Jungle.com into ARG we will be able to provide customers with an improved offer."

An ARG representative insisted the Jungle.com brand will remain. He added that it was "impossible" to say how many jobs will go, but they will be offset by the creation of 2,000 jobs when Argos opens new stores. It will also hire 18,000 temporary staff at Christmas. "This decision is a logical progression between ARG and Jungle.com," he said.