Tesco to cut 180 jobs as supermarket admits the changes will come as ‘difficult news’ to staff at risk
Britain’s largest supermarket has announced plans to cut 180 roles at its headquarters despite forecasting profits of up to £3.1billion this year.
Tesco confirmed the restructuring at its Welwyn Garden City base, stating that around 250 new positions will also be created as it reshapes operations to focus on online growth and faster delivery services.
The company said the proposals would represent “difficult news” for employees whose roles are affected.
Tesco has not specified which positions will be removed or detailed the nature of the new roles that will be introduced under the reorganisation.
The retailer has begun consultation discussions with trade union Usdaw over the planned changes.
Ken Murphy, the supermarket’s chief executive, said the business must adapt to changing consumer habits.
He said: “We are committed to giving our customers the best value and service every time they shop with Tesco.
“As we look forward and anticipate customers’ changing needs, we must ensure we continue to have the right setup and capabilities.”
Tesco to cut 180 jobs despite £3.1billion profit forecast
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Mr Murphy said operating efficiently and with agility was essential in what he described as a fiercely competitive market environment.
He confirmed discussions with affected staff had already begun and said the company would provide support to those whose jobs are at risk, including help in finding alternative roles within the business where possible.
Daniel Adams, national officer at Usdaw, criticised the move.
He said: “It remains incredibly disappointing that, while the company still performs strongly, it continues to make decisions like this.”
The changes will affect head offices
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Mr Adams confirmed the union would engage fully in consultation talks and examine the commercial case underpinning the proposals.
“In the meantime, we will be providing our members with the support, advice and representation they need.”
Tesco expects to report profits of between £2.9billion and £3.1billion for the current financial year, prompting questions from the union about the timing of the workforce reduction.
According to data from Worldpanel, Tesco held a 28.7 per cent share of the UK grocery market in the three months to December 28, its strongest performance in more than 10 years.
