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Tesco to cut 1,200 head office jobs

By
Reuters
Published
Jun 28, 2017
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Tesco will cut 1,200 jobs at its head office to simplify its operations, a spokesman said on Wednesday.

Tesco has already cut thousands of jobs under a turnaround led by Chief Executive Dave Lewis, aimed at restoring profit at the group which has a 28 percent share of the grocery market.



About a quarter of the roles at Tesco's head office in Welwyn Garden City, Hertfordshire near London would be abolished in the latest cuts, the spokesman said, with all roles affected.

"This is a significant next step to continue the turnaround of the business," he said.

"This new service model will simplify the way we organise ourselves, reduce duplication and costs but also, very importantly, allow us to invest in serving shoppers better."

In October, the CEO set out plans to reduce operating costs by another 1.5 billion pounds over three years, and increase operating profit margin to between 3.5 percent and 4.0 percent by the 2019-20 financial year.

The company announced plans last week to cut 1,100 jobs in Cardiff with the proposed closure of a customer service centre.

Shares in Tesco were trading up 1.6 percent at 171 pence at 1535 GMT.

 

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