Deathwatch - DSGi cuts to hit customers, staff speak out?
Last week, PC Retail announced that 250 staff from DSGi's servicing and repair division - the TechGuys - had been made redundant. DSGi didn't put it in quite those words when pushed for an comment by PC Retail:
"The TechGuys, the UK's leading provider of technology solutions and repairs, is repositioning the business to provide better service for customers through a more efficient operating model.
"This has involved the tightening and unifying of TechGuy's decentralised structure. Unfortunately, the announcement did mean that a number of field-based roles have been removed in the last few months, essentially achieved through offering alternative roles within the group and a number of voluntary redundancies."
What does the loss of so many front-end staff mean for both the company and the customers? The answer may lie in the comments of news site Pocket-Lint, several of which claim to be written by DSGi staff. Amongst the comments is the claim that 250 staff haven't left the company - that number is in fact the staff remaining in TechGuys department:
PC World (Lincoln) - Out of the remaining 250 tech guy field engineers, over 100 of them are expected to leave before 6th January 2009. Under the terms of the new contracts, they have upto four weeks grace period to stay with the new setup or take the redundancy offered to them in December. Many expressed the grace period as a reason to earn another months wage before leaving. Our head office seem to be seeing through the economic downturn by offering close to ZERO after sells service while we still sell extended warranties to our customers, knowing full well we don't have any resource to offer the product we are selling. It's going to end in tears.
PC World (Teesside) - We have had more customers back through the doors in the past month returning plasma and LCD tv than ever before. The are not getting repaired in the 28 days allowed under 1st year warranty. So we are taking massive hits on our bottom line. We are swimming in faulty product and the Techguys aren't getting to them to repair them because the aint enough engineers.
A Techguy - The plan was to reduce the head count across the entire Techguys group around 35% thus saving the company nearly £30 Million in wages and overheads, however the real figures are closer to 75%. This was not expected and has had a big impact on the customers (more so those customers with large screen TV, LCD, Plasma). There simply aren't enough trained and experienced engineers to cope. In the long run the company will have to look at the new Hub setup and review it; if it doesn't then a lot more people will leave.
If these are accurate comments from genuine members of staff, then the End Of Days for DSGi may not be too distant. Thanks to Bitterwallet reader mcozio for the lead.