Dixons Carphone is axing 3,000 jobs under plans to shut all 531 of its mobile-only Carphone Warehouse stores.

The move is a U-turn after chief executive Alex Baldock previously said he would not shut a large number of stores when he unveiled his turnaround strategy almost a year and a half ago.

At the time, he said would continue to review loss-making stores. "However, we are not sitting here with any major plans to close a load more stores. We like stores," he added.

This week he said that customers' shopping habits were changing "very fast and we have to change with them".

Smaller, mobile-only sites have been losing more and more money, he added, as fewer shoppers upgrade their devices or opt for less profitable, SIM-only deals as well as more flexible contracts.

The Carphone Warehouse shops will close on April 3, with about 1,800 of staff offered jobs in other stores, but 2,900 will be made redundant.

"Even though it's a very tough decision, it is right for the long-term. It is an exceptionally difficult day for our colleagues. It’s a painful and difficult day for the business," Mr Baldock said.

The decision had been a long time in the making and the board approved it last night, he said.

The company will offer "enhanced" redundancy packages, "paying out 75pc more than statutory requirements" - or £28m rather than the minimum £16m.

Staff who have been with the company will get at least £800 extra, with part-time and short-term workers receiving between £500 and £700.

Dixons Carphone said the closed stores represented around 8pc of its total selling space. The Carphone Warehouse brand will live on in concessions at its larger 305 Currys PC World sites.

Shares soared by a fifth to 74p despite the wider declines on the London market. It said it still expects to make pre-tax profits of £210m for the year.

The retailer has been struggling to turn around its mobile phone business, which made a £90m loss last year.