Tesco Confirms Major Restructuring with 380 UK Job Cuts
Tesco, the UK's leading supermarket chain, has officially announced plans to cut approximately 380 jobs across its store network nationwide. The decision forms part of a broader operational restructuring designed to enhance efficiency and customer service in an intensely competitive retail market.
Centralised Bakery Operation to Be Phased Out
The most significant change involves the removal of a centralised bakery operation, which will be replaced by newly installed in-store bakeries at around 100 Tesco Express locations. This shift aims to provide fresher products directly to customers while streamlining supply chain logistics.
According to a leaked internal memo shared on social media platforms, staff members at affected stores were informed of the impending changes during morning briefings on Wednesday, January 28th. The supermarket emphasised that these adjustments are necessary to maintain competitiveness and continue investing in core customer priorities.
Company Statement on Operational Simplification
In an official statement, Tesco explained: "To continue meeting our customers' needs, and to stay ahead in what remains a highly competitive market, we need to continue to simplify our operations. In recent years, this efficiency has enabled us to continue to invest in what matters most to our customers – value, quality and service."
The statement further detailed: "As part of this, we have spoken to a small number of colleagues about some proposed changes to our business, including updates to some of our replenishment schedules; the removal of a centralised bakery operation as we install new in-store bakeries in around 100 Express stores; and additional investment for our F&F Clothing departments in a number of stores, to further improve the customer experience."
Support for Affected Employees and Vacancy Opportunities
Tesco has highlighted that approximately 1,500 vacancies currently exist across its retail and distribution divisions, providing potential redeployment opportunities for impacted staff. The company has committed to supporting affected colleagues through the transition period.
Ashwin Prasad, Tesco UK Chief Executive Officer, commented: "Any decision that impacts our colleagues is a difficult one to make. However, these changes are necessary to enable us to continue to win with customers, and offer them the unrivalled value, quality and service they expect from us. Our priority is always to support impacted colleagues, and we will do everything we can to help them find alternative roles within our business."
Separate Consultation on Distribution Centre Closure
In a related development, Tesco confirmed that separate consultation will begin in coming weeks regarding the closure of its Hinckley Distribution Centre. This follows previous announcements about investment in a new, larger facility in the same area featuring improved energy efficiency, advanced technology, and enhanced colleague facilities.
A company spokesperson clarified: "The new site, located close to our existing Hinckley DC, is larger, more energy-efficient, and equipped with the latest technology and improved facilities for our colleagues. We value all our colleagues at our Hinckley DC, and they will all be offered a role at the new site."
These restructuring measures represent Tesco's ongoing efforts to optimise operations while navigating the challenging economic landscape facing UK retailers. The supermarket maintains that such changes are essential for long-term sustainability and continued customer satisfaction in an evolving retail environment.