DHL Supply Chain is to commence a major restructure of its operations at its Acton Gate DC in Stafford, due to falling volumes.

DHL launched formal consultations initially with 200 warehouse and logistics staff at the site after proposing to move its Argos operations to its DCs in Marsh Leys in Bedford and Faverdale in Darlington. DHL’s Habitat operations will then transfer from Kettering and Marsh Leys to Acton Gate.

The firm, which operates the site for Home Retail Group, has seen volumes fall since the retail giant sold Homebase a year ago.

In a statement DHL said: “Following the sale of Homebase to Westfarmers and the reduction in volumes this entails, DHL has announced proposals to repurpose its distribution centre at Acton Gate, Stafford.

“Should these proposals go ahead, Argos’ operations will continue to be provided by DHL but moved to Marsh Leys and Faverdale, while Habitat’s operations will transfer from Kettering and Marsh Leys to Acton Gate.”

Unite regional organiser Simon Green told redundancies could include 39 driver jobs but added that he was hopeful this number would be reduced during the consultation period.

He added: “We had our first meeting last week and have already managed to reduce the number of people at risk of redundancy. It is early days yet but we are hopeful that the number will reduce further over the coming weeks.”

UPDATE: The union and DHL have heard further discussions since this article was published and Unite said the the number of jobs at risk has now been halved to around 100. DHL is understood to have agreed to retain some administration roles at Acton Gate. Driver jobs at risk remain at 39 however. The two parties are due to meet again next Wednesday.