10/2/2008 11:56:00 AM
Phones 4u takes out 15 area sales directors
Phones 4u will dispense with almost half of its 40 area sales directors (ASDs) in a bid to make the company ‘more efficient’.
The ASDs will be reduced to 25 in the coming weeks, and the five divisional directors will also be decreased to two.
ASDs will now be called ‘associate regional directors’, while the divisional directors will be ‘divisional managing directors’.
ASDs are paid around £200,000 per year including bonuses, so it will take out almost £4m from the retailer’s annual salary bill.
The ASDs are paid between £65,000 and £100,000 per year in basic salary, with incentives to double their pay packet if they hit targets.
Divisional chiefs have been restructured so there are now three divisions spread across the country. The two former divisional chiefs have been offered new roles within the company.
Phones 4u MD, Brendan Sweeney, said: ‘We will have a stronger team as a result of this. The better people will have bigger responsibilites.’
He also said: ‘We had people managing a smaller number of stores compared to Carphone, and now our people will have more responsibility.’
The ASDs are, for many, emblematic of the hard sales reputation that has been both a curse and a key component to the retailer’s success.
Sweeney added: ‘The changes are about giving people accountability and autonomy. The way we’ve structured it, there will be different levels of capability. It will be a stable and experienced teams.’
Sources have said that the ASDs ‘had big carrots and sticks’ to achieve results in the past, contributing to pressure on store managers to improve sales. The new structure is another step taken by CEO Tim Whiting to shed the old hard sales culture.
Phones 4u has already outsourced 180 of the 200 people in its IT department to Indian firm Tata. It also dropped 60 head office jobs in its auditing and compliance department.