Shares in Dixons the UK equivalent of JB Hi Fi have soared 14% after the Company announced the closing of 531 stores and the sacking of 2,900 employees.

Dixons Carphone who has become a victim of the slowdown in smartphone sales is set to sell their products in the future via Curry’s PC World stores and online.

Dixons said that the cuts represent 8 per cent of its selling space.

he jobs losses affect about 60 per cent of the stores’ employees. The remainder will take on new roles.

The Company claims that the cuts are not due to the Coronavirus but part of a restructuring to return this part of the business to profitability the business is set to make a loss of over $180 million this year.

Dixons said there would be a total positive impact of around $400m on cash flow from the restructuring.

The FTSE 250 group in its statement on Tuesday said it has not yet seen a “material impact from Covid-19, though we are preparing for one”.

The electronics retailer blamed changes in the mobile-phone market, with consumers upgrading handsets less often.

Investors reacted favourably to the prospect of cost reductions, lifting the shares as much as 14% early Tuesday in London. Over the past 12 months they’ve fallen about 52%.

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