Tesco is cutting another 1,200 jobs, this time at its head office

 
Emma Haslett
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Shares in Tesco rose after the news (Source: Getty)

Tesco is cutting 1,200 jobs at its head office, it emerged today - just days after it admitted plans to cut more than a thousand call centre jobs.

The job cuts will affect about a quarter of head office staff at locations in Welwyn Garden City and Hatfield, as well as smaller offices around the UK and one in India.

A spokesperson for the supermarket, which has struggled in recent years as discounters put pressure on its margins, said the move was designed to reduce duplication and cut costs.

“We plan to make to the way we operate our business," he said.

"This is a significant next step to continue the turnaround of the business. This new service model will simplify the way we organise ourselves, reduce duplication and cost but also, very importantly, allow us to invest in serving shoppers better. We have made good progress so far in our turnaround but we have more to do. We will work with colleagues to support them as we go through this important transition.”

Turnaround

Chief executive, Dave Lewis, has cut thousands of jobs since he was brought in to turn around the supermarket after its accounting scandal in 2014.

Last week the supermarket said it was closing its Cardiff call centre, putting 1,100 jobs at risk, instead creating 250 new roles at its Dundee call centre.

Back in April, 3,000 jobs were put at risk after Tesco announced plans to end 24-hour opening at 69 of its stores.

The strategy seems to be working: earlier this month it reported a 2.3 per cent rise in like-for-like sales in its first quarter, its sixth consecutive quarter of sales growth.

On Saturday Tesco announced plans to raise its workers' pay, with a 10.5 per cent rise to hourly pay over the next two years.

Shares in the supermarket were up 1.4 per cent at 171.35p in late morning trading.

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