Tesco is cutting 1,800 jobs due to in-store changes - here's what it means for staff
Tesco has announced that it plans to cut 1,800 jobs due to changes in its in-store bakeries.
Last year, the chain of supermarkets announced that it would consider selling more pre-baked goods than relying on its in-house bakeries.
It has now confirmed that 58 of its bakeries will be converted, resulting in large redundancies in the company.
Jason Tarry, Tesco’s UK and ROI chief executive, said, “We need to adapt to changing customer demand and tastes for bakery products so that we continue to offer customers a market-leading bakery range in store.
“We know this will be very difficult for colleagues who are impacted, and our priority is to support them through this process. We hope that many will choose to stay with us in alternative roles.”
Tesco haa said that 257 stores will still keep their in-store bakeries and staff.
Tesco said it will look to find other jobs for the staff, with "thousands of store vacancies" expected to be available across its network between now and May.
Is Tesco in trouble?
In 2014, the retail giant was in trouble. The aftermath of the 2008 financial crisis had taken its toll and a new CEO, David Lewis, was appointed.
Since then, Tesco has stabilised and made profits, with its CEO David Lewis saying in 2019 that Tesco was on “firm foundations” with a “sustainable” growth plan, despite shelling out £129 million over an accounting scandal.
Lewis has reduced the £22 billion debt inherited when he took over the company, but Tesco is still threatened by German competitor retailers such as Aldi and Lidl.
Tesco has also today (25 Feb) sold 20 per cent of its holdings in a Chinese joint venture, giving the company £275 million. The company said the sale will let Tesco focus on core operations.