Tuesday 10 January 2017

Tesco Announces More Than 1,000 Job Cuts


Tesco says that 1,015 people will be made redundant as part of a shake-up of its distribution network.

The supermarket giant said it was proposing "changes to its distribution network in order to run its business more simply and in a way that best serves its customers".

The proposals will see the number of Tesco distribution centres cut from 25 to 23.

Welham Green distribution centre near Hatfield in Hertfordshire will shut with 444 job losses, and Chesterfield distribution centre will shut with 207 job losses.

A management restructure will also see 364 jobs go.

Tesco also announced:

  • Welham Green's grocery operations will be moved to the Reading distribution centre.

  • Chesterfield's general merchandising will be moved to the Middlesbrough distribution centre, bringing the majority of general merchandising under one roof.

  • Withdrawing from Daventry hanging garments shared distribution centre which is currently operated by third party DHL. Its clothing operations will move to nearby Tesco Daventry distribution centre.

  • Bringing all warehouse operations that are currently carried out by DHL and Wincanton in house. Simplifying the management structure across all distribution centres.

Tesco said the changes will "form part of a wider programme of transformation, which has been taking place over the last two years, to ensure Tesco is set up for the future in a rapidly changing retail sector".

Tesco is expected to create 533 new roles as part of the shake-up and the changes are expected to be in place by June.

The new jobs include 130 roles at the Reading distribution centre and 46 new positions at the Middlesbrough distribution centre.

There will also be 40 new roles at the Daventry distribution centre, and 317 new jobs created through a management restructure.

Matt Davies, CEO of Tesco UK&ROI, said: “As the needs of our customers change, it’s vital we transform our business for the future.

“As part of this we are proposing to close two of our distribution centres in the UK. These changes will help to simplify our distribution operations so we can continue to serve our customers better.

“Our priority throughout this process has been our colleagues and we will continue to do all we can to support them at this time.”

The announcement from Tesco comes just days before the company's third quarter results and Christmas trading update, with analysts forecasting relatively strong results.



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