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Tesco to Eliminate Upwards of 2,000 Office Jobs

Tesco to Eliminate Upwards of 2,000 Office Jobs



WELWYN GARDEN CITY, UK - In its second set of cuts in one week, Tesco has announced it will be laying off 1,2000 members of its head office and support center staff in an attempt to keep costs low. This is part of a larger turnaround plan, according to BBC News, to cut nearly $2 billion (£1.5 billion) in costs.

"This new service model will simplify the way we organize ourselves, reduce duplication, and cost but also, very importantly, allow us to invest in serving shoppers better," spokesperson for Tesco said, according to BBC.

Tesco

Tesco plans to cut positions including marketing, finance, buying, and property functions as part of this streamlining effort, the Financial Times reports. The layoffs will affect one in four workers at the supermarket’s head office.

This announcement comes on the heels of many staff reducing and cost-cutting ventures by Tesco. Just last week, Tesco revealed in a press release that it would “simplify its customer service operations” by laying off 1,100 workers at one of the company’s call centers.

Matt Davies, CEO, Tesco UK“The retail sector is facing unprecedented challenges, and we must ensure we run our business in a sustainable and cost-effective way, while meeting the changing needs of our customers,” said Matt Davies, Tesco’s UK CEO.

Earlier in the year, Tesco also announced plans to eliminate 1,600 deputy store manager roles, as well as 1,000 members of its distribution staff.

Will these strategies be enough to allow for Tesco to climb back towards the top of UK's retail landscape? AndNowUKnow will be there to tell when the time comes.

Tesco