FRIDAY, March 29, 2024
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Tesco UK to cut 4,500 jobs at 153 outlets in latest layoffs

Tesco UK to cut 4,500 jobs at 153 outlets in latest layoffs

Tesco is to cut 4,500 jobs at 153 high street Tesco Metro supermarkets, adding to the 9,000 roles the UK’s biggest retailer warned were at risk earlier this year, the Guardian reported on Tuesday.

The supermarket chain said it was responding to changes in customer habits, including a shift towards using the larger Metro stores for convenience shopping rather than large weekly food shops. It is also facing tough competition from discounters Aldi and Lidl, which are continuing to open new shops.
But labour groups said the cuts indicated that the government was not doing enough to alleviate the burden on traditional shops and prevent the high street being “hollowed out”. According to the British Retail Consortium the number of people employed in retail is down 72,000 on a year ago.
In a statement on its website, Tesco said the job cuts were part of an effort to “simplify and reduce processes and administrative tasks” across all of its Metro stores.
“The changes in our Metro stores will be focused on better tailoring them to how our customers shop,” it said.
“The Metro format was originally designed for larger, weekly shops, but today nearly 70 per cent of customers use them as convenience stores, buying food for that day.”
It said it could cut staff numbers because it had found simpler ways of stacking shelves that meant there was less need to store stock in backrooms, while it also wanted to simplify store management structures and introduce more flexible working hours.
Tesco will also reduce opening hours in 134 of its 1,750 smaller neighbourhood Express stores, where customer traffic is lower.
Jason Tarry, the supermarket’s UK and Ireland boss, said: “In a challenging, evolving retail environment, with increasing cost pressures, we have to continue to review the way we run our stores to ensure we reflect the way our customers are shopping and do so in the most efficient way.
“We do not take any decision which impacts colleagues lightly, but have to make sure we remain relevant for customers and operate a sustainable business now and in the future.”
The retailer, which has more than 300,000 UK employees and more than 3,400 stores, said earlier this year it could cut 9,000 jobs, although it hoped to redeploy up to half into other customer service roles. Fishmonger, butcher and baker jobs at the retailer were expected to be at risk, along with counter staff.
The cuts at Tesco are part of plans by the chief executive, Dave Lewis, to slash 1.5 billion pounds (Bt56.1 billion) from Tesco’s cost base. 
A source at Tesco's operations in Thailand revealed that the job cut is in line with the reshuffle at UK operations and does not have any impact on the Thai operations. The company declined to make any further comment.

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