The new chief executive of DSG International, the group behind Currys and PC World, is expected to cut 400 head office jobs this week.

It is understood that John Browett, who joined DSG from Tesco in December, will announce that nearly one in four roles will go.

Retail Week reported yesterday that most of the cutbacks would come as Mr Browett eliminates back-office duplication across the Currys and PC World chains in fields such as finance and supply. One employee told The Times that redundancy notices had been served yesterday. A spokesman refused to comment.

Analysts believe that Mr Browett could also announce the closure of up to 200 under-performing stores on Thursday as he tries to revive a business facing fierce competition from supermarkets, online rivals and, most recently, Best Buy, the American group that bought half of Carphone Warehouse's retail chain last week. He is expected to transfer more business online and to run some PC World and Currys stores under one roof.

He may also cut the dividend by as much as 50 per cent to free money for investment in the business.

DSG has issued two profit warnings this year, the first in January. At the time Mr Browett said that it could take years to turn the business around, amid a slowdown in consumer spending. PC World has borne the brunt of the slowdown in the UK, with analysts criticising the store's product ranges and its format.

DSG has also suffered from mixed fortunes in its international division, which raises 40 per cent of group revenue. Last month, Mr Browett said that 40 of DSG's 150 Italian stores would close within two years.

Yesterday, shares in DSG rose more than 4p, 6 per cent, to 75p, in a rally that investors put down to rumours of a potential bid from Best Buy and the hope of cost-savings by Mr Browett. The shares were trading at 150p eight months ago.

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