5/21/2009 12:54:00 PM
Carphone cuts UK direct sales and is set for South Africa outsource
Carphone Warehouse is outsourcing its direct sales functions at the cost of 70 jobs.
The move comes as part of its ‘fit for purpose’ cost cutting scheme announced earlier in 2009, and is included in 550 previously announced job cuts.
The direct sales team is believed to have consisted of between 100 and 200 staff in the past, but Carphone said it was only back office functions of the direct sales team that would be affected.
The retailer is considering outsourcing its outbound call centres to South Africa. A Carphone spokesman said: ‘We can confirm that we are looking at potential outbound sales call centres in South Africa,’ but added that nothing had been agreed as yet.
Reports in South Africa claimed Carphone employs 1,000 agents across 850 seats in Cape Town, Durban and Johannesburg. It has apparently added 60 new seats. Carphone has reportedly increased its initial £15m investment in South Africa by just under 20%.
Carphone’s UK direct sales team is understood to have a large concentration of high calibre staffers from Australia and New Zealand.
Direct sales has frequently been attributed as a strong area of sales from Carphone’s overall business.
In April, the company cut another 95 jobs in addition to the 450 it had already announced in February.
The retailer said the jobs would be in administration functions but was adamant that ‘front line sales’ would not be affected.
In February, Carphone chief Andrew Harrison (pictured) told Mobile: ‘We are generally reshaping a number of departments; we need to be more focused and do fewer things, better.’