Tesco to cut 1,700 shop floor jobs

Image source, Reuters

Tesco is to cut 1,700 jobs from its branches and warehouses as part of its turnaround strategy for the company.

The UK's biggest supermarket chain also plans to create 900 jobs and says it will try to move staff affected by the cuts into the new roles.

UK chief executive Matt Davies said the changes were "necessary to ensure our business remains competitive and set up for the future".

Tesco is aiming to make 拢1.5bn in cost savings over the three years to 2020.

The cuts will be made both in the UK and in the group's international business.

Tesco employs about 460,000 staff internationally, including more than 300,000 in the UK.

Last year, it announced that 1,200 jobs would go at its UK head office and a further 1,100 as a result of the closure of its call centre in Cardiff.

Group chief executive Dave Lewis took over in 2014, since when he has ordered more than 10,000 job cuts.

The company is facing competitive pressures from discount rivals, top-end retailers and online sales.

"These changes remove complexity and will deliver a simpler, more helpful experience for colleagues and customers", said Mr Davies.

He added: "We recognise these are difficult changes to make, but they are necessary to ensure our business remains competitive and set up for the future."

The roles being cut include personnel managers in 757 large stores and seven warehouses in the UK, and compliance managers in 667 large stores and seven warehouses.

In addition, the job of customer service manager will be scrapped in 266 Tesco Extra stores. In future issues like complaints and staff training will be handled by other managers in the branches.

The newly created posts will have broader remits in recruitment, training and staff relations, and will work across several sites in distribution, stores and warehouses.

Mr Davies said the company hoped to "retain as many colleagues as possible in the new roles we have created and in the vacancies we currently have available".