The cuts will signal the first phase of recently appointed chief executive John Browett’s plans to get the business back to growth.

On announcing like-for-like sales down one per cent for the 25 week period to 5 April 2008, Browett said: "The trading environment since we last reported has remained challenging across our markets, particularly in the UK, Italy and Spain.

“Whilst like for like sales patterns are broadly in line with those we reported over the Christmas period, it is clear that customers have become increasingly promotion and deal driven, impacting gross margins.

“Going forward it is important that we increase our focus on delivering the value, choice and service that our customers demand, particularly in the prevailing difficult economic environment. I will present the first phase of the business review I have carried out since joining DSGi on 15 May 2008."

The CEO has already announced that 40 of its 150 stores in Italy will close over the next two years, but the UK will see the biggest overhaul. 

Overall sales in DSG’s UK computing were said to be “disappointing,” despite reasonable demand for laptops and games consoles. Sales of stand alone non-hardware products were lower year on year, continuing a negative trend.

Last week, Best Buy, the US electrical retail giant, entered the UK market with a 50 per cent stake in Carphone Warehouse for £1.1 billion. The company is believed to be planning an aggressive expansion strategy into DSG's territory.