Axe poised over staff at WH Smith

The company is expected to axe about 300 jobs, most of which are tipped to come from the Swindon retail headquarters, in Green-bridge, which employs about 1,000 people.

A smaller number will lose jobs at the company's London office.

Louise Evans, spokeswoman for WH Smith said: "We will be releasing more details with our interim results on Thursday."

In December last year the Even-ing Advertiser reported that the firm might have to make several hundred workers redundant because of falling profits. This follows an announcement that WH Smith had received a preliminary approach from the Permira group with an offer of 375p per share in cash.

The figure is some 44 per cent higher than Friday's closing share price of just over 259p.

Yesterday, the share price was 34 per cent higher during mid-morning trading because of news of the offer.

The company's share price has been falling over the past 12 months.

Last October, profits fell on the back of poor sales caused by a combination of hot weather in the summer, the trend for supermarkets to sell cheap CDs, and the downturn in air travel, which hit its USA travel retail division.

As well as the interim results, chief executive Kate Swann will also outline a new strategy on Thursday.

If the bid goes ahead, it will be another in a long line of public to private deals in the retail sector including the recent sale of Debenhams and the acquisition of BHS and Arcadia by Philip Green.

Dennis Grant, chief executive of Swindon Chamber of Commerce said Swindon could easily absorb the job losses.

He said: "These people are likely to have been informed under employment laws.

"Swindon will easily be able to absorb this excess labour. These people are well skilled and I have no doubt that they will be able to secure new work."

WH Smith has more than 740 shops across the UK in many top shopping areas, as well as airports and train stations.

Anthony Osborne