Tesco is cutting 400 jobs across its stores and head office management as part of a major efficiency programme aimed at “simplifying” the business.
Tesco said the job cuts were driven by the “more competitive than ever” grocery market, requiring the company to find new ways to invest in pricing.
Tesco UK CEO Matthew Barnes announced that the company had begun discussions with colleagues about a series of proposed changes in stores and head offices, aiming to find “new, more efficient ways of working.”
The job cuts will impact staff in Tesco bakeries as the supermarket shifts away from scratch baking in stores to focus on more continental deli-style products. Additionally, there will be cutbacks to management roles in Tesco Mobile phone shops and a reduction in head office management positions.
Tesco has also announced that it will soon begin a consultation on the closure of its Snodland Distribution Centre in Kent. This decision follows its previously announced plans to invest in a new distribution centre in Aylesford.
Tesco stated that the Aylesford site, located just three miles from the Snodland Distribution Centre, is larger and features new technology and improved facilities for colleagues. The company also confirmed that all Snodland employees would be offered roles at the new site.
Tesco’s announcement of job cuts comes despite recording its “biggest ever” Christmas sales, with UK store sales rising 4% in the six weeks leading up to 4 January. The supermarket also continues to hold a dominant market share position.
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.”