NEWS

Tesco cuts 1,200 head office jobs

Published on: 5th July 2017

Latest job cut announcement comes as CEO Dave Lewis presses on with a cost-cutting drive.

The UK’s largest supermarket chain told staff of the cuts on Wednesday morning. A quarter of staff at offices in Welwyn Garden City and Hatfield face the axe, along with some jobs at the Birmingham head office of Tesco’s One Stop chain and the retailer’s technology and retail support centre in Bangalore, India.

“This is a significant next step to continue the turnaround of the business. This new service model will simplify the way we organise ourselves, reduce duplication and cost but also, very importantly, allow us to invest in serving shoppers better,” a spokesperson for the company said.

Head office jobs are to go across many functions including property, finance, buying and marketing once consultation has been completed over the summer.

The job cuts are the latest in a string of cutbacks implemented by Dave Lewis, who joined in autumn 2014.

Only last week Tesco said it would close a call centre in Cardiff in February, putting 1,100 jobs at risk as part of a turnaround plan in which Lewis has pledged to save £1.5bn of costs.

About 250 jobs will be created in the group’s other call centre, in Dundee, which will handle all customer queries, including emails, social media inquiries and phone calls. Workers from Cardiff will be offered work there but few are expected to move.

Last week Tesco also announced a 10.5% rise in the hourly wage of store staff over the next two years, from £7.62 to £8.42 an hour by November 2018. It will continue to offer premium pay for Sunday and bank holiday shifts, but the premium will slip from time and a half to time and a quarter in July 2018.

 

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