Tesco is to scrap over 1,700 management jobs as part of plans to simplify its operations, it announced today.
In a move that, it is claimed, will improve efficiency and give line managers clearer accountability for colleague and customer experience, the supermarket giant is doing away with the roles of people manager and compliance manager in its large stores and fulfilment centres.
It is also scrapping the role of customer experience manager.
Tesco said it would try to find alternative roles for the 1,700 staff affected “wherever possible.”
The removal of people managers will affect 757 large stores and seven of Tesco’s fulfilment centres.
The scrapping of the compliance manager’s position will impact staff at 667 large stores and also seven fulfilment centres.
Currently only the 226 largest Extra stores have customer experience managers.
Tesco said as a result of the changes 900 new roles with broader remits would be created: people partners, learning partners and colleague relations partners working across distribution, stores and fulfilment.
A new colleague administration would also be created to support management teams in all large stores and fulfilment centres.
The new job cuts come despite Tesco recording an increase in UK like-for-like sales for the six weeks to 6 January of 1.9%, including 3.4% growth in like-for-like food sales.
Tesco also recorded what it claimed to be the best performance in years for its biggest stores where many of the cuts are concentrated.
However, the results also showed Tesco was hit by a continued slowdown in general merchandise sales and troubles caused by the collapse of Palmer & Harvey.
The moves continue a huge wave of job cuts at the UK’s biggest retailer over the past few years. Last year saw 1,200 jobs axed at its head office, with around a quarter of staff at its Welwyn Garden City base made redundant.
Tesco CEO Dave Lewis cut thousands of HQ jobs soon after he took over at the retailer, amounting to a reduction of a third of staff.
Last year Tesco also announced 1,100 jobs were to go at its Cardiff call centre, after moving operations to Dundee.
“These changes remove complexity and will deliver a simpler, more helpful experience for colleagues and customers,” said Matt Davies, Tesco UK and ROI CEO. “We recognise these are difficult changes to make but they are necessary to ensure our business remains competitive and set up for the future.
“Our priority now is to support affected colleagues through these changes in any way we can. We hope to retain as many colleagues as possible in the new roles we have created and in the vacancies we currently have available.”
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