Tesco to axe 400 jobs ahead of Budget tax hikes

29 January 2025, 14:43

Tesco has announced plans to axe 400 jobs.
Tesco has announced plans to axe 400 jobs. Picture: Getty

By Henry Moore

Tesco has announced plans to cut 400 jobs across its UK stores and head office in a bid to “simplify” the business.

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Staff in Tesco Mobile Stores, in-shop bakeries and managers at the supermarket’s head office face the axe, a statement confirmed.

The UK’s largest supermarket said it is working to find "more efficient ways of working" in an increasingly competitive economy.

The retail giant said the shake-up will see it change how it operates in certain parts of the business, including changing its bakery model in some stores.

Read more: Lloyds, Halifax and Bank of Scotland to close 136 more high street branches - is your local affected?

Signage outside a Tesco supermarket at Tenterden in Kent, England on May 31, 2020.
Signage outside a Tesco supermarket at Tenterden in Kent, England on May 31, 2020. Picture: Alamy

It is also altering the management structure it uses in Tesco Mobile stores.

Matthew Barnes, Tesco's UK boss, said: "These are difficult decisions affecting our colleagues, but we believe they are necessary to enable us to invest in what matters most to our customers.

"Our priority is to support impacted colleagues and we will do everything we can to help them find alternative roles within our business. Today, we have almost 1,000 vacancies available."

Elsewhere, Tesco has confirmed plans to launch a consultation over the closure of its Snodland distribution centre in Kent.

Tesco celebrated its “biggest ever Christmas” in 2024, as it increased its share of the UK grocery market to its highest level since 2016.

It reported UK and Ireland like-for-like sales, excluding fuel and VAT, up 3.7% over the six weeks to January 4 and record trading in the week before Christmas.

The news of job cuts at Tesco comes a week after Sainsbury’s confirmed plans to axe 3,000 positions across its UK stores.

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