UK retail giant Tesco to axe more than 2,000 jobs

TESCO has announced that it will axe about 2,100 jobs, as sky-high inflation hikes costs.

Britain’s biggest supermarket group said on Tuesday (Jan 31) that it was planning to cut about 1,750 management roles. It added that it would axe a further 350 jobs with the closure of some pharmacies, all remaining hot food counters and other restructuring.

Earlier on Tuesday, the group said it was changing how it managed its larger stores, realigning its store manager roles, and reducing the number of leads and team managers in larger stores. The cuts would be offset by the creation of about 1,800 “leader roles”, it said.

Tesco said the 1,750 managers affected would have the option of moving to shift leader vacancies, or be dismissed and receive redundancy pay. It added that the other 350 workers impacted would be offered alternative roles, noting that it had around 2,000 vacancies across the business, in addition to the more than 1,800 new shift leader roles it would be introducing.

The group has benefitted from passing on some of its own rising costs to consumers, many of whom appear willing to stay loyal to the group. It posted a bumper revenue for the key Christmas season, even as UK inflation remained around the highest level in decades.

But some customers switched to less expensive rivals, such as supermarkets run by German discounters Aldi and Lidl, as prices soared amid a cost-of-living crisis.

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All of Britain’s major grocers have been seeking cost savings as they try to keep a lid on rising prices. Last week, Asda, the country’s third-largest grocer, said it planned to remove 211 night shift managers and change the hours of 4,137 workers. REUTERS