Tesco to cut 400 jobs across stores and head office

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.