Tesco has announced a series of business changes which will put 2,100 jobs at risk, as it rolls out a new management structure instore and axes all remaining food counters.
Describing the decisions as “difficult but necessary”, the UK’s largest supermarket said the plan has been made to ensure it remains “focused and competitive in a fast-changing market”.
An instore management restructure will see the UK’s largest supermarket reducing the number of lead and team manager roles in a move which will impact around 1,750 staff. At the same time, around 1,800 new shift leader roles will be introduced across all its larger superstores and Extra stores.
Colleagues impacted by the management changes will have the option of moving into shift leader vacancies with financial support or taking redundancy.
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This new management structure has been rolled out to around 350 of Tesco’s smaller superstores in recent years and has already proven successful, with new shift leader roles leading on day-to-day operational duties.
Tesco has said it will also realign manager roles to ensure they are all of equal size and complexity, focusing on overall store performance and supporting colleagues.
The grocer has also decided to close all counters and hot delis from 26 February, with the spaces being repurposed to “better reflect customers’ needs”.
The majority of stores no longer operate any counters, following “a significant decrease in demand” over the last few years, with customers no longer saying they are a reason to shop with the supermarket.
Tesco said all affected colleagues will be offered alternative roles in store, adding that where it can work with a third party to offer a counter experience in-store, it will continue to do so.
Jason Tarry, Tesco UK and ROI chief executive officer, said: “These are difficult decisions to make, but they are necessary to ensure we remain focused on delivering value for our customers wherever we can, as well as ensuring our store offer reflects what our customers value the most.
“Our priority is to support those colleagues impacted and help find alternative roles within our business from the vacancies and newly created roles we have available.”
In addition to these national changes, Tesco said there will be a some additional localised changes across the business, including the closure of eight pharmacies (leaving 365), removing some night shifts and reducing hours within some Post Offices.
It is also removing a small number of roles in different functions of Head Office and closing the Tesco Maintenance National Operating Centre (NOC) in Milton Keynes.
Tesco expects these localised changes to impact around 350 roles across the business.
“Our priority is to support colleagues impacted by these changes and we will enter a consultation process with USDAW on these proposals,” it said.
Tesco currently has around 2,000 vacancies across its business, in addition to the 1,800 new shift leader roles.
It has also been announced this morning that Tesco is set to acquire Paperchase as part of a pre-pack deal which will affect hundreds of jobs.
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