Tesco will slash more than 300 head office roles as it seeks to cut costs after profits plunge, but will recruit 12,500 seasonal staff.
Tesco has said it will be losing 325 of its head office staff as the retailer looks to cut costs after profits plunge 64%. The job cuts will only affect head office and field-based staff and not employees that work in its stores. The company has also announced a significant winter recruitment drive and will be hiring 12,500 seasonal workers for the busy Christmas period. The news comes after an earlier announcement that profits would be hit due to soaring inflation.
“We announced some changes to a small number of roles in our office and regional teams, to ensure our business is as simple and efficient as possible, and so we can continue to invest for our customers,” a Tesco spokesperson said. “This means a reduction of around 325 roles, but with around 500 vacancies in our office, we will work with colleagues to find suitable alternatives where possible.”
The latest cost saving initiative is being brought in with the aim of making £500m of saving this year. The consultation period began in the last fortnight, only months after Tesco cut back on 1400 jobs earlier in the year. Tesco has also been streamlining the number of suppliers it works with and bringing in more automated tills to further reduce costs.
This announcement comes on the back of Tesco’s first half report which posted a £413m pre-tax profit – down 64% on the previous year.