Tesco to shed 1,000 members of staff from distribution business in streamlining move

Francesca Washtell
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Tesco Supermarket Report 92% Fall In Profits
The job losses will be concentrated in the group's distribution branch (Source: Getty)

Tesco is set to lay off 1,000 members of staff from its distribution network as part of a wider streamlining programme.

The proposed changes will reduce the number of its distribution centres in the UK from 25 to 23 and will result in 1,000 redundancies.

However, the move will also create 500 new jobs, leaving a net total of 500 jobs lost at the Big Four supermarket group.

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Tesco will close its Welham Green distribution centre, moving its grocery operations from the site to the Reading distribution centre, and will withdraw from the Daventry clothing distribution hub.

It will also bring all warehouse operations currently carried out by DHL and Wincanton in house and will "simplify the management structure" across all distribution centres.

"As the needs of our customers change, it’s vital we transform our business for the future," said Matt Davies, chief executive of Tesco UK and Ireland.

Read more: Sales at Tesco are growing at their fastest rate in three years

"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."

Tesco has not said when the proposed changes would be due to come into force.

The supermarket behemoth is this week expected to reveal like-for-like sales growth of 1.25 to two per cent for its third quarter to 26 November.

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