What’s The News?
Tesco, the supermarket market giant is embarking in an aggressive £ 1.5 billion cost-cutting drive for its UK business. This involves 15,000 job cuts and the closure of its meat, fish and deli counters.
What Does This Mean?
The in-store bakeries will also be overhauled with frozen instead of fresh dough, meaning jobs for skilled bakers will be cut, according to The Mail On Sunday.
Reports also claim staff canteens will be replaced with vending machines.
It is understood from the reports that some counters of the larger Tesco Extra stores will remain open from Thursdays to Sundays, but others face closure.
To date, chief executive Dave Lewis has axed more than 10,000 roles since joining the supermarket in 2014.
“Dave Lewis’ attitude seems to be ‘if in doubt, just close it’- but for elderly customers, or those on a budget, using the counters for a few slices of ham, those aren’t the days they do their shopping,” one source said to The Mail On Sunday.
Why Does It Matter?
The Bigger Market Picture: Tesco is targeting to make £1.5 billion in cost savings by 2020 as chief executive Dave Lewis tries to restore profits which have never recovered from the 2014 accounting scandal.
The supermarket chain is the latest big name to make dismissals and join its rivals Asda, Morrisons and Sainsbury’s in giving a facelift to the overall structures of its stores.
Lewis has attempted to match the fast-growing German discounters Aldi and Lidl by opening a new discount brand called Jack’s last year.
Staff is expected to be updated regarding the changes early next week with redundancy negotiations expected for those involved.
A Tesco spokesman said:
“We’re always looking at ways to run our business more simply and efficiently. Whenever we make changes in our business, colleagues are always the first to know.”
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