Dick Smith to cut 80 jobs

Dick Smith Electronics will make 80 support workers redundant in a restructure aimed at shaving up to $12 million off the company's costs.

The restructure to the retailer's support and logistics operations is expected to cost the business up to $5.5 million after tax, the company said today.

Around 80 support workers will be let go under the "streamlining" effort, which has also resulted in a contract with a new unnamed logistics provider, Dick Smith CEO Nick Abboud said today.

He said the partnership would provide an "end-to-end approach to supply chain management", thereby improving efficiencies. The company also recently consolidated its Australian and New Zealand support offices.

The redundancies are expected to be complete by June.

The company has forecast a reduction in operational costs to 18 percent of sales by fiscal 2017 as a result of the restructure and new logistics partnership.

It is expecting net profit growth of up to 5 percent in its full fiscal 2015 year, and sales growth of around 10 percent.

In its first financial year after spinning off from former parent Woolworths, Dick Smith reported a 525 percent increase in net profit to $42.1 million.

For its current financial year, the company reported a slight rise in first-half net profit to $25.2 million.