Business News

Tesco says 9,000 jobs 'impacted' in changes to UK business

Key Points
  • Tesco said Monday that around 90 stores will close counter operations selling fresh meat, fish and deli foods.
  • The supermarket chain said it also needed less staff for stock control, merchandising and at its head office.
  • The strategy shift will cost up to 9,000 jobs.
A Tesco supermarket in Glasgow, Scotland.
Jeff J Mitchell I Getty Images

Tesco, Britain's biggest retailer, is to carry out changes at its stores and head office which could affect the jobs of as many as 9,000 employees.

The supermarket said in a statement on Monday that the main change in its stores would be to its fresh meat, fish and delicatessen areas after it recognized that fewer customers were frequenting those counters.

The grocer said it expected to close counters in about 90 stores, with the other 700 trading with either "a full or flexible counter."

"Overall, we estimate that up to 9,000 Tesco colleague roles could be impacted," the grocer said.

The company estimated that as many as 4,500 of the 9,000 staff affected could be "redeployed to other customer facing roles." 

"We're making changes to our UK stores and head office to simplify what we do and how we do it, so we're better able to meet the needs of our customers," said Jason Tarry, Tesco's CEO of  U.K. & Republic of Ireland in the release.

Tesco also said a change in operations meant it needed fewer employees for stock control and marketing products and it was also seeking a reduce staff at its head office.

Following the release, shares in Tesco fell 2.4 percent to hit a session low but have since pared losses.