Tesco is to cut about 400 jobs across its stores and head office, the supermarket chain has said. The news comes days after Sainsbury’s said it will cut more than 3,000 jobs, close down its in-store cafes, and remove its pizza and hot food counters from stores.
Tesco has said it will cut 400 jobs as part of plans to “simplify” the business amid a market that is “more competitive than ever”. The supermarket giant said managers in its head office and Tesco Mobile phone shops, as well as staff at its in-store bakeries, will be affected.
Matthew Barnes, Tesco’s UK boss, said: “These are difficult decisions affecting our colleagues, but we believe they are necessary to enable us to invest in what matters most to our customers. Our priority is to support impacted colleagues and we will do everything we can to help them find alternative roles within our business. Today, we have almost 1,000 vacancies available.”
Saiunsbury’s said the job losses, which affect about 2% of its 148,000 staff, are part of plans to “simplify the business” amid a “particularly challenging cost environment”. As well as affecting shop-floor staff, the move will involve axing 20% of senior management workers over the coming months as part of a shake-up of its head office.
Sainsbury’s was already pushing to save £1 billion over the coming years, but the PA news agency understands the cut in senior management roles is partly linked to the recent increase in company national insurance contributions (NICs) in the October Budget. Following the announcement, a Downing Street spokesperson said “difficult decisions” in the Budget would help pave the way for economic growth.
Sainsbury’s said in late 2024 that changes in the Budget would mean an extra £140 million in costs, with chief executive Simon Roberts warning of potential “tough choices” as a result.