More than a fifth of Tesco's in-store management have taken voluntary redundancy rather than move onto a lower rate of pay, as part of a huge restructure of the supermarket.
Around 1,000 people have left the grocer, which has effectively stripped out two layers of management – deputy manager and line support - from its store teams.
Consultation around the changes began in February. In total, 22 per cent of those eligible took redundancy, while 55 per cent of staff affected have agreed to work for a lower rate of pay. The remainder moved to roles that were on the same pay.
Tesco is part-way through a a major cost-cutting drive, which includes selling off billions of pounds worth of assets, including its data arm Dunhumby, closing its Cheshunt head office and exiting unprofitable stores. It revealed a record £6.38bn loss in April.
A Tesco spokeswoman told City AM: “We’ve made some changes to management structures in stores to help us deliver the best possible service to customers. The new structure is simpler, with clearer lines of responsibility. Where there have been changes to a colleague’s role we have worked with them to ensure they are fully supported.”
Separately the supermarket is looking at cutting up to 10,000 roles as part of a radical overhaul by new chief executive Dave Lewis.
Tesco's share price has lifted today, up 2.3 per cent at pixel time.