Tesco has announced they will cut 400 roles across its stores as it plans to simplify its business.
The cuts affect head office management roles, managers at Tesco Mobile stores, and staff in its in-store bakeries, where Tesco plans to stop scratch baking.
They explained the redundancies were caused by the “more competitive than ever” market that has meant it has to find new ways to invest in its value offer.
It has begun talking to colleagues about a series of proposed changes in stores and head offices as it looks for more efficient ways of working.
They explained the redundancies were caused by the “more competitive than ever” market
GETTYTesco UK CEO Matthew Barnes said: “These are difficult decisions affecting our colleagues, but we believe they are necessary to enable us to invest in what matters most to our customers.
“Our priority is to support impacted colleagues, and we will do everything we can to help them find alternative roles within our business. Today, we have almost 1,000 vacancies available.”
Tesco also revealed today that it will soon begin a consultation on closing its Snodland Distribution Centre in Kent, following earlier plans to invest in a new distribution centre in Aylesford.
The Aylesford site, located just three miles from Snodland, is larger and equipped with new technology and better facilities for employees. Tesco assured that all staff at Snodland would be offered a position at the new site.
This announcement of job cuts comes despite Tesco reporting its "biggest ever" Christmas sales, with a four per cent increase in UK store sales during the six weeks leading up to January 4, and a strong market share.
Tesco was one of 70 retailers who signed a letter to Chancellor Rachel Reeves, warning that the proposed tax hikes in her Budget would result in job cuts across the sector.
Tesco CEO Ken Murphy also stated that the National Insurance increases would add £250million to retailers’ wage bills.
Morrisons CEO Rami Baitiéh similarly warned that businesses would face an "avalanche of costs" following the government's October Budget.
Tesco is not the first UK grocer to push ahead with a major cost-cutting drive as of late.
Last week Sainsbury’s unveiled plans to cut 3,000 jobs as part of a drive to simplify its business and address rising costs, including a £140m leap in employer national insurance contributions from April.
Morrisons is also set to cut over 200 jobs in its retail people team.
Asda revealed the axing of 13 regional managers as part of a senior shake-up.
With customers feeling the squeeze, many have been choosing to shop at cheaper rivals such as Lidl and Aldi.
