Tesco is to cut about 400 jobs across its stores and head office as part of plans to “simplify” the business.
The UK’s largest supermarket chain said managers in its head office and Tesco Mobile phone shops, as well as staff at some of its in-store bakeries, will be affected.
Tesco said it is having to seek “more efficient ways of working” due to the increasingly competitive nature of the UK grocery industry.
The retail giant said the shake-up will see it change how it operates in certain parts of the business, including changing its bakery model in some stores.
It is also altering the management structure it uses in Tesco Mobile stores.
Matthew Barnes, Tesco’s UK boss, 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.”
Separately, Tesco said it will soon launch a consultation over the closure of its Snodland distribution centre in Kent.
It said this follows plans to open a new warehouse site in Aylesford, around three miles away, with all affected workers at Snodland being offered roles at the new site.
Earlier this month, Tesco bosses cheered the retailer’s “biggest ever Christmas” as it increased its share of the UK grocery market to its highest level since 2016.
It reported UK and Ireland like-for-like sales, excluding fuel and VAT, up 3.7% over the six weeks to January 4 and record trading in the week before Christmas.
The cuts at Tesco come a week after rival Sainsbury’s said it would axe around 3,000 jobs as part of a major overhaul.
The UK’s second-largest grocer will close down its in-store cafes and remove its pizza and hot food counters from stores as a result.
Fellow rival Morrisons said it planned to cut around 200 jobs earlier this month, while Asda cut 475 head office jobs in November as part of efforts to arrest a recent slump in performance.
All retailers were among firms to warn that jobs will be impacted by Labour’s autumn Budget, which included plans to increase National Insurance contributions for businesses and rise the minimum wage.
Andrew Griffith, the Conservatives’ shadow business secretary, said: “With all the big four supermarkets having announcing job cuts, Labour’s choices are having the real-world impact we predicted.”
A Government spokesman said: “While this is a commercial decision for Tesco we understand this will be a concerning time for workers at Tesco and their families.
“A broad range of support is available for those who may be affected. Acas can also provide employees and employers with free, impartial advice on workplace rights, rules and best practice.
“We had to take difficult decisions in the Budget to restore economic stability and clear the path for growth as part of our plan for change.
“As part of this, we are providing the certainty businesses need by capping corporation tax for the duration of Parliament and locking in permanent full expensing to boost investment.”
