Tesco is putting staff at risk of redundancy (Image: Getty)
Supermarket giant Tesco is planning to cut 380 jobs at stores across the UK, the retailer confirmed on Wednesday afternoon. The retailer has told the Express that it is proposing to ‘remove’ 380 roles in a number of stores. Tesco said it is ‘simplifying’ its operations, including the removal of a ‘centralised’ bakery operation and the installation of bakeries at 100 Express stores instead.
While not every Tesco store is said to be affected, staff in stores which will be hit by redundancy risk were reportedly briefed this mornin,g according to a leaked memo shared on social media. Tesco said it needs to make changes due to a ‘highly competitive market’ but also stressed it has 1,500 vacancies and will look to ‘support affected colleagues’.
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Tesco said in a statement: “To continue meeting our customers’ needs, and to stay ahead in what remains a highly competitive market, we need to continue to simplify our operations. In recent years, this efficiency has enabled us to continue to invest in what matters most to our customers – value, quality and service.
“As part of this, we have spoken to a small number of colleagues about some proposed changes to our business, including updates to some of our replenishment schedules; the removal of a centralised bakery operation as we install new in-store bakeries in around 100 Express stores; and additional investment for our F&F Clothing departments in a number of stores, to further improve the customer experience.
“Taken together, the changes we’re proposing mean that around 380 roles will be removed. We have 1,500 vacancies currently in our business and we will do everything we can to support affected colleagues.”
Ashwin Prasad, Tesco UK CEO, said: “Any decision that impacts our colleagues is a difficult one to make. However, these changes are necessary to enable us to continue to win with customers, and offer them the unrivalled value, quality and service they expect from us.
“Our priority is always to support impacted colleagues, and we will do everything we can to help them find alternative roles within our business. Today we have around 1,500 vacancies across retail and distribution.”
A Tesco spokesperson added: “Separately, we will also begin consultation in the coming weeks on the closure of our Hinckley Distribution Centre (DC).
“This comes following our announcement last year, as part of our wider growth plans, to invest in a new DC in the area. The new site, located close to our existing Hinckley DC, is larger, more energy-efficient, and equipped with the latest technology and improved facilities for our colleagues. We value all our colleagues at our Hinckley DC, and they will all be offered a role at the new site.”
Tesco, the UK’s biggest grocery chain, reported sales growth over the Christmas period and cheered increasing its share of the overall market to over 28% over the final quarter – its highest for more than a decade.
The UK’s biggest grocery chain reported a 3.3% rise in UK and Ireland like-for-like sales over the six weeks to January 3, with growth of 3.2% in the UK and 3.8% across Ireland.
Sales over its third quarter before the Christmas period lifted 4% in the 13 weeks to November 22.
The group increased its share of the UK grocery market to 28.7% in the three months to December 28, which jumped to 29.4% in the key Christmas month, according to Worldpanel data.
Chief executive Ken Murphy said earlier this month, following its positive sales news over Christmas: “Our investments in value, quality and service drove further gains in customer satisfaction and strong growth in fresh food, contributing to our highest UK market share in over a decade.
“Competition is as intense as ever and we know value remains a priority for customers.”
He added that competitive activity in the market was “extraordinary”.
“It was relentless,” Mr Murphy added.
The group recently said it was bringing back its blue-and-white striped value logo as it ramps up its price war with German discounter Aldi.
