Tesco is to cut 325 roles from its regional offices but plans to hire thousands more temporary workers for the busy festive season.
The leading supermarket giant said that more than 300 jobs are being axed from the firm’s offices and regional teams, not its supermarkets, as the retailer’s profits take a hit amid the cost-of-living crisis and rising inflation.
However, senior management at the supermarket chain say they still plan to hire 12,500 temporary staff across the UK for the UK for Christmas.
Despite the job cuts, existing retail staff for Tesco will get a pay rise of 20p from 13 November, taking workers’ hourly rate to £10.98 in London and £10.30 in the rest of the country.
“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,” a Tesco spokesperson said.
“This means a reduction of around 325 roles. We currently have over 500 vacancies in our office and will work with colleagues to find alternative roles wherever possible.”
Ken Murphy, chief executive of Tesco, said that he is aware that customers are facing a tough time and “watching every penny to make ends meet.”
“That’s why we’re working relentlessly to keep the cost of the weekly shop as affordable as possible, with our powerful combination of Aldi price match, low everyday prices and clubcard prices, together covering more than 8,000 products, week in, week out,” he said.
Murphy added: “As we look to the second half, cost inflation remains significant, and it is too early to predict how customers will adapt to ongoing changes in the market.”
The news comes as Tesco revealed its performance for the first half of the 2022-23 financial year, which showed a fall in pre-tax profit to £413 million, down 64% from £1,143 million in the same period last year.
