Tesco and Sainsbury's 'to cut thousands of jobs'

Tesco Jobs

Tesco is stripping out a layer of management from its stores in a move that puts up to 1,700 jobs at risk.

While the company will not confirm the exact number of employees it will affect, store management jobs will be axed.

Employees will have a change to apply for this roles or take a more junior role if unsuccessful, or face redundancy. Those who are unsuccessful in their applications will either be demoted or made redundant.

Unite the Union's Taryn Trainor said: "The positions of store supervisor, team leader and deputy manager are set to disappear across the United Kingdom on June 11th as part of restructuring plans announced by Sainsbury's management [on Tuesday]".

Britain's largest retailer said it is looking to "simplify" its operational structure and said the changes will "improve efficiency" by removing the roles of people manager, customer experience manager and compliance manager from its bigger stores.

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"The proposals will introduce a more efficient and effective structure".

He added: 'Our intention is not to reduce overall headcount as a result of these proposals.

Tesco also recorded what it claimed to be the best performance in years for its biggest stores where numerous cuts are concentrated.

"They are shrinking as the discounters have fuelled a need to be more competitive on price, at a time when the volumes that the retailers are selling reduce", said Philip Dorrell, managing partner at Retail Remedy.

The changes affected workers in the supermarket's human ressource teams in Manchester, Coventry, Edinburgh, and London.

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It needs the savings to help achieve its target of a group operating margin of 3.5 percent to 4.0 percent by the 2019-20 financial year, up from 2.3 percent in 2016-17.

Matt Davies, Tesco UK and Ireland chief executive, said: "These changes remove complexity and will deliver a simpler, more helpful experience for colleagues and customers".

Tesco is to cut 1,700 jobs from its branches and warehouses as part of its turnaround strategy for the company.

Last June, Tesco cut 1,200 jobs at its head office and 1,100 jobs in Cardiff, with the closure of a customer service centre.

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