Tesco is cutting 1,200 jobs at its head office and support centres as part of a major cost-cutting drive as the UK grocery leader adjusts to increasing cost pressures.
Tesco said in a statement that the head-office cuts are “a significant next step to continue the turnaround of the business.”
The UK’s biggest supermarket told staff on Wednesday morning about the cull, which amounts to a quarter of its workforce in Welwyn Garden City and Hatfield.
Tesco is implementing a turnaround plan that aims to reduce costs by £1.5bn.
The cuts come after the retailer said last week it would close a call centre in Cardiff at the cost of 1,200 roles.
Earlier this year it also culled 1,600 deputy store manager roles in its smaller stores, with junior staff left to pick up the slack.
The eliminated roles include marketing, finance, buying and property functions and will affect one in four workers at the supermarket’s head office in Welwyn Garden City.
Tesco chief executive Dave Lewis has been hailed for leading a turnaround of the supermarket since taking the helm in 2014.
But earlier this month, he warned of “tough market conditions” as soaring inflation results in higher shop prices and squeezes consumer spending.