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Dick Smith restructure sees 80 support staff go

Dick Smith restructure sees 80 support staff go

Retail expects new initiatives to net $8 million to $12 million in savings

ASX-listed retailer, Dick Smith (ASX:DSH) is undergoing a company restructure that will see 80 support office staff made redundant.

The retailer stated it was embarking on a number initiatives focused on improving its capability to sustain future growth.

The initiatives, which will come into force in June, are expected to generate between $8 million to $12 million in savings for the retailer. It will incur a one time cash cost of about $6.9 million to $7.9 million.

“We have taken the difficult decision to streamline our structure, impacting positions at the support office,” Dick Smith managing director, Nick Abboud, said.

“In addition, we’re implementing further enhancements to our supply chain.

"These include a long term contract with a new Australian and international logistics provider, which will improve our in-house efficiency via an end-to-end approach to supply chain management.”

“Cost efficiency is not the key driver of these initiatives, however we anticipate annualised financial benefits from July 2015 of about $8 million to $12 million, which are instrumental in reducing our cash costs of doing business to 17.5 per cent to 18 per cent of sales by FY17.”

The initiatives are the result of a number of support office IT-related projects enabling improved efficiency across the business.

It is inline with improvements made to its retail network structure, integration of the New Zealand and Australian support offices and Auckland Distribution Centre.

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