Alongside yesterday’s news that Tesco is facing a hit to its annual profit from cost inflation and weakening consumer spending, it was revealed that the retailer is cutting 325 jobs from its regional offices as part of a £500m efficiency drive.
A Tesco spokesperson said: “Last month 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. This means a reduction of around 325 roles.”
The supermarket noted that it still had more than 500 vacancies available in its offices and that it would “work with colleagues to find alternative roles wherever possible”.
Back in February, Tesco said more than 1,600 roles were at risk as it axed overnight stock replenishment roles and closed its discount chain Jack’s.
Its current efficiency drive includes introducing more self-service checkouts in its larger stores.
Despite the current cost pressures, Tesco is still planning to take on 12,500 temporary workers to keep up with demand over the festive period.
The group also announced yesterday that its shop staff in the UK would receive another pay rise, their second this year. This follows pay hikes by rival chains in recent months as companies battle for staff amidst labour shortages.
NAM Implications:
- What this means is that NAMs need to find ways of filling resulting gaps in their supplier-retailer interface…
- …via a strengthening of their network.
- The gaps will not be filled by the retailer/Tesco.
- (they are cutting the roles to save money, get it?)
