The company is also shutting two of its UK distribution centres.
The UK’s biggest grocer is axing its warehouse relationships with DHL and Wincanton and bringing all of these operations in-house.
The move is part of a plan by Matt Davies, Tesco UK and Ireland boss, to simplify “behind the scenes” operations and tailor them to an online world.
The news comes days before Tesco’s much-anticipated trading update on Thursday detailing how well it fared over the crucial Christmas period. The cuts are thought to be part of a longer term rather than a short term fix.
Tesco will also shut its Chesterfield distribution centre and move the majority of its general merchandising into its Middlesbrough centre. The decision is set to create around 1,015 redundancies although it was looking to create 533 new roles. However, the majority of these new roles will be based at Tesco’s other distribution centres, more than 100 miles away, and some will require different skills.
A Tesco spokesman said that in total 444 jobs would be lost at Welham Green and 207 jobs will be axed at Chesterfield. 364 head office roles will also be axed.
Matt Davies said that the proposals to close two of Tesco’s distribution centres would help “to simplify distribution operations so we can continue to serve our customers better. Our priority throughout this process has been our colleagues and we will continue to do all we can to support them at this time.”