Tesco has announced plans to cut approximately 400 UK workers jobs as part of a broader strategy to “simplify” its operations. The supermarket giant revealed that the affected roles will span its bakeries, Tesco Mobile shops, and its head office in Welwyn Garden City, Hertfordshire.
In a statement, Tesco highlighted the increasingly competitive landscape of the UK grocery market as the driving force behind these changes. The company said it is seeking “more efficient ways of working” to maintain its market position.
Key Changes and Impact on Employees
The shake-up will see Tesco modify its bakery operations in select stores and restructure management within Tesco Mobile outlets. Matthew Barnes, Tesco’s CEO, acknowledged the difficulty of these decisions, stating, “These are difficult decisions affecting our colleagues, but we believe they are necessary to enable us to invest in what matters most to our customers.”
Barnes assured that the company’s priority is to support affected Tesco staff, adding, “We will do everything we can to help them find alternative roles within our business. Today, we have almost 1,000 vacancies available.”
Distribution Centre Closure and New Warehouse Opening
Separately, Tesco announced plans to consult on the closure of its Snodland distribution centre in Kent. This move comes as the company prepares to open a new warehouse in Aylesford, just three miles away. Tesco confirmed that all employees from the Snodland site will be offered roles at the new facility.
Tesco’s Strong Christmas Performance
Despite the job cuts, Tesco recently celebrated its “biggest ever Christmas,” reporting a significant increase in its UK grocery market share—the highest since 2016. The retailer’s UK and Ireland like-for-like sales, excluding fuel and VAT, rose by 3.7% over the six weeks leading up to January 4, with record-breaking trading in the week before Christmas.
Wider Industry Trends
Tesco’s announcement follows a similar move by rival supermarket Sainsbury’s, which recently disclosed plans to cut 3,000 jobs by closing its remaining cafés and shutting down its patisserie and pizza counters.
The Workers Union Says…
“TWU has expressed concern over Tesco’s decision, emphasizing the need for fair treatment and transparency during this restructuring process. “While we understand the pressures of a competitive market, the livelihoods of hardworking staff must remain a priority. We urge Tesco to uphold its commitment to offering alternative roles and to provide comprehensive support to those impacted.”
