Reports: Tesco To Cut 9,000 Jobs
UNITED KINGDOM - Across the pond, one of the United Kingdom’s largest grocery retailers, with 3,400 stores and 300,000 employees, is attempting to brave the waves of a tumultuous retail market by cutting 9,000 staff jobs. In addition to job cuts, Tesco is also simplifying its operations and implementing cost saving strategies that include altering the makeup of its stores, according to a report by Reuters.
“We’re making changes to our UK stores and head office to simplify what we do and how we do it, so we’re better able to meet the needs of our customers,” Tesco Chief Executive Jason Tarry said, according to The Guardian. He also noted that the market continues to pose a challenge that Tesco is currently adapting to. Overall, the retailer asserts that a smaller staff is needed for stock control, merchandising, and head office operations.
One way the UK-based retailer is adapting is by closing its fresh meat, fish, and delicatessen counters in 90 stores, with the remaining 700 switching to a “full or flexible counter.” Tesco’s head office will also witness a restructuring and simplifying.
“Staff at Tesco are shocked and dismayed by the scale of yet another round of potential job losses, which clearly demonstrates the pressure retailers are under in the current very difficult and uncertain economic climate, as the cost-cutting continues,” said Pauline Foulkes, Usdaw Union’s National Officer. “This is devastating news for staff, who have played a crucial role in Tesco’s turnaround project, contributing to 12 successive quarters of growth, solid Christmas trading, and over £1bn of profit.”
The Guardian notes that Tesco estimates that about 4,500 of the 9,000 workers will be able to find “alternative roles across the business, limiting the impact on staff.”
For more from the front lines of the grocery retail landscape, AndNowUKnow will continue to bring you the latest.