Supermarket giant Tesco is looking to make further cost savings via another major retrenchment of head-office workers, casting doubt on the future of its marketing staff among others.
A quarter of all posts at its Hatfield and Welwyn head offices are now up for the chop subject to a summer consultation exercise, equivalent to 1,200 staff. The news comes just one week after 1,100 call centre staff in Cardiff were told that their services would no longer be required.
This will also deplete Tesco’s manpower in areas such as property, finance and buying as part of chief executive Dave Lewis’s plan to make efficiency savings.
Announcing the job losses a Tesco spokesperson said: “This is a significant next step to continue the turnaround of the business. This new service model will simplify the way we organise ourselves, reduce duplication and cost but also, very importantly, allow us to invest in serving shoppers better.
"We have made good progress so far in our turnaround but we have more to do. We will work with colleagues to support them as we go through this important transition.”
Since arriving at Tesco in autumn 2014 Lewis has repeatedly proven unafraid to take tough decisions, culling 9,000 posts across the group in his first year in charge.
It’s not all bad news for Tesco’s embattled workforce however, with store staff set to receive a 10.5% rise in their hourly wage from £7.62 to £8.42 by November 2018. The cost cutting doesn't appear to have had a deleterious effect on Tesco thus far, with the supermarket giant now outperforming sector rivals.