Tesco announces 1,700 job cuts as it 'simplifies' its business

Supermarket says it will also create 900 roles and will help staff affected into new positions within the company

Ben Chapman@b_c_chapman
Monday 22 January 2018 15:22
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The company said it will remove some managerial roles from large stores and fulfilment centres
The company said it will remove some managerial roles from large stores and fulfilment centres

Tesco has announced plans to “simplify” its business that will result in 1,700 job cuts.

The company said it will remove some managerial roles from 757 large stores as well as its fulfilment centres but that it was also creating 900 new positions. Tesco said it would help those losing their jobs to find new positions within the company where possible.

Matt Davies, Tesco UK and Ireland chief executive, said: “These changes remove complexity and will deliver a simpler, more helpful experience for colleagues and customers.

“We recognise these are difficult changes to make but they are necessary to ensure our business remains competitive and set up for the future.

“Our priority now is to support affected colleagues through these changes in any way we can. We hope to retain as many colleagues as possible in the new roles we have created and in the vacancies we currently have available.”

The affected staff are people managers, compliance managers and customer experience managers. The company said the new roles would have “a broader remit” and work across multiple sites.

Changing shopping habits have meant a trend towards smaller convenience stores over out-of-town hypermarkets.

Tesco expanded aggressively into large spaces that could accommodate everything under one roof during the 1990s and 2000s, but as consumers have increasingly bought electrical and household goods online, the demand for these stores has diminished.

The big four UK supermarkets have also responded to the challenge posed by Aldi and Lidl by cutting costs and prices while simplifying their product ranges.

Last year, Tesco announced plans to cut 2,300 head office and call centre jobs.

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