Tesco UK: Britain's largest groceries chain to cut jobs in effort to 'simplify' business - career losses news

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The retailer is ‘simplifying’ its operations in the UK’s tough grocery market 📉
  • Tesco plans to eliminate 400 jobs across stores and head office to ‘simplify’ operations
  • Affected roles include managers, Tesco Mobile staff, and some in-store bakery employees
  • The cuts are driven by the need for more efficient working amid increasing competition in the UK grocery market
  • This follows rival Sainsbury’s announcement of 3,000 job cuts as part of a major restructure
  • Rising operating costs, including minimum wage hikes, are adding pressure on UK retailers

The UK’s largest supermarket chain is set to eliminate around 400 jobs across its stores and head office as part of efforts to “simplify” its operations.

Tesco has announced that managers at its head office, staff in Tesco Mobile stores, and employees in certain in-store bakeries will be impacted.

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The company said the move is driven by the need to adopt “more efficient ways of working” in response to the growing competition in the UK grocery market.

The announcement comes just a week after rival Sainsbury’s revealed plans to cut approximately 3,000 jobs as part of a significant restructuring.

(Photo: JUSTIN TALLIS/AFP via Getty Images)(Photo: JUSTIN TALLIS/AFP via Getty Images)
(Photo: JUSTIN TALLIS/AFP via Getty Images) | AFP via Getty Images

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.”

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Supermarkets and other retailers across all sectors have been warning of cost pressures ahead of new Budget measures due to come into effect from April. These include a rise to the minimum wage, and a higher employer national insurance rate.

While these moves are designed to boost pay for staff, businesses have sounded the alarm over increased operating costs, which ultimately may have to be passed on to the consumer in the form of higher prices at the tills.

Major retailers like Next have already confirmed that price increases are on the horizon, describing a planned 1% rise as "unwelcome" but unavoidable.

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Meanwhile, Aldi has announced a pay rise for its in-store workers starting in March, increasing its minimum hourly rate for store assistants to £12.71, up from the current £12.40.

Those in and around London will see their minimum pay rise to £14 per hour, up from £13.65.

Aldi has consistently positioned itself as a leader in pay among UK supermarkets. The latest increase outpaces rival chains, with Sainsbury’s offering a minimum of £12.60 (effective from August) and Lidl starting at £12.40.

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