Britain’s biggest supermarket group Tesco plans to cut about 400 jobs from its stores and head offices, the retailer said on Wednesday.
Tesco said it is cutting staff as it seeks efficiency savings in order to invest in the business.
The move follows that of number-two retailer Sainsbury’s, which said last week it planned to reduce its headcount by over 3,000 roles.
British companies – particularly large employers – are facing increased costs this year after the new Labour government’s first budget in October hiked employer social security payments and the national minimum wage.
Earlier this month, Tesco, Sainsbury's and Marks & Spencer said they would be stepping up their drive for efficiency through automation ahead of increased social security charges and rising minimum wage.
Retailers warned that the changes would cost the sector £7 billion a year.
Tesco said, “We have started speaking to colleagues about a number of proposed changes in our stores and head office, including changing our bakery model in some stores, and updating our management structure in Tesco mobile phone shops.
“Taken together, the changes we are proposing mean that around 400 roles will be removed.”
Tesco said it would try and find alternative roles for impacted staff, noting it currently has 1,000 vacancies across the business.
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