30 January 2025 , 07:58
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Retail giants Tesco have revealed that they were reevaluating their business plans and cutting around 400 jobs, across stores and in the head office, as they struggle with a ’competitive’ market
Tesco have announced a shocking business switch-up, which will see around 400 jobs slashed.
These are expected to affect both stores and the head office, with redundancies being announced today, January 29. Tesco officials said 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.
Following the announcement, the supermarket has begun talking to employees about a series of proposed changes in stores and head offices as it looks for more efficient ways of working. Shoppers are also thought to see changes. Tesco has said it will cut 400 jobs as part of plans to "simplify" the business amid a market that is "more competitive than ever".
The supermarket giant said managers in its head office and Tesco Mobile phone shops, as well as staff at its in-store bakeries, will be affected.
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."
It has not yet been confirmed which jobs will be axed, nor which stores will be directly affected.
Tesco has also been reviewing their premises, as they revealed today that it will soon begin a consultation on closing its Snodland Distribution Centre in Kent. This follows their earlier plans to invest in a new distribution centre in Aylesford.
The new site is located around three miles from Scotland, with Tesco assuring they’d offer Scottish employees an opportunity to transfer.
At the end of last year, Tesco released their Interim Trading Results, which placed them at £2.9billion revenue. Despite this, the supermarket retailer complained of Rachel Reeves’ budget announced in October.
Tesco was one of 70 retailers who signed a letter to Chancellor Reeves, stating that the proposed tax hikes in her Budget would result in job cuts across the sector. CEO Ken Murphy also stated that the National Insurance increases would add £250million to retailers’ wage bills.