Thousands of jobs to be cut at Tesco – according to reports

Tesco

Thousands of jobs are to be cut at Tesco, according to the latest reports.

The supermarket is the latest retailer to be hit by the fall in consumer spending and the rise of the low-cost retailer.

The latest plan could lead to the loss of 15,000 jobs and would involve the closure of meat, fish and deli counters as well as downgrading in-store bakeries.

Other measures would include the closure of staff canteens and are part of a drive to cut £1.5bn from the retailers’ cost base.

Chief executive Dave Lewis has drawn up the plan in a bid to rebuild profits at the supermarket which once dominated the retail sector.

The plans would affect most of Tesco’s 732 largest stores across the country.

It also understood that senior management is likely to be affected by the cuts.

Pauline Foulkes – Usdaw National Officer said: “Reports and speculation in the media about significant job cuts are distressing for Tesco staff and it is appalling that they should hear about the future of their jobs in this way.

“Usdaw is seeking an urgent meeting with the company to clarify the situation, to examine the details of what changes they are proposing and what this means for staff.

“Our priority will be to press Tesco to confirm the details of their proposed changes to stop any further speculation.

“In the meantime Usdaw’s officials and reps are on hand to support our members and further updates will be provided once we have further information.”

Last year 1,700 staff lost their jobs when the retailer stripped out a layer of middle management.

With more than 300,000 UK employees and more than 3,400 stores, Tesco is the UK’s biggest private sector employer.

Bryan Roberts, global insights director at research firm TCC Global, said getting rid of extras such as deli counters would “alienate” some shoppers and remove a key point of difference with the discounters.

“These counters don’t contribute a lot to sales but the shoppers who do use them typically spend more and are more loyal,” said Roberts. “It’s part of the aura of being a fresh food grocer and you lose something if you take them away.”

A spokesperson for Tesco said: “We’re always looking at ways to run our business more simply and efficiently. Whenever we make changes in our business, colleagues are always the first to know.”

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