Tesco has announced plans to close its Cardiff call centre, putting 1,100 jobs at risk.
In a statement today it said it was consolidating the Cardiff operation into a single, larger call centre in Dundee, where 250 new roles will be created.
The company said it aims to close its Cardiff centre entirely by February 2018.
Matt Davies, the company's UK chief executive, said:
The retail sector is facing unprecedented challenges and we must ensure we run our business in a sustainable and cost-effective way, while meeting the changing needs of our customers.
To help us achieve this, we’ve taken the difficult decision to close our customer service operations in Cardiff.
We realise this will have a significant effect on colleagues in the Cardiff area, and our priority now is to continue to do all we can to support them at this time.
The company is in the throes of trying to merge with wholesaler Booker, a controversial deal which has not gone down well with some of its shareholders.
Last week the supermarket posted figures showing a 2.3 per cent in like-for-like sales during the first quarter, its sixth consecutive quarter of rises.
However, that came shortly after the Serious Fraud Office fined it £129m for false accounting.
Shares in the retailer were hit last week after Amazon bought Whole Foods Market, prompting investors to worry the tech giant will begin to take market share from traditional retailers.
Yesterday shares were hit again after a computer glitch led to thousands of home deliveries being cancelled.