United Kingdom: Tesco to cut 325 office jobs as it grapples with inflation

In a bid to save £500 million (€572.55 million) this year, supermarket giant Tesco announced on 5 October that it is to cut more than 300 jobs at its headquarters and in regional teams. The group is following in the footsteps of Co-op supermarkets, which cut 400 head office jobs this summer, and clothing retailer Primark, which made 400 managers redundant this year. The aim, according to a Tesco spokesperson, is to “ensure our business is as simple and efficient as possible, and so we can continue to invest for our customers”. The person adds that Tesco will seek to find alternative roles for those whose jobs are being cut, with the group currently looking to fill some 500 vacancies. Alongside the announcement, Tesco has unveiled a second annual pay rise for shop staff. From 13 November, their basic hourly wage will be increased by 20p (€0.23) to £10.30 (€11.79), and to £10.98 (€12.57) in London. In addition to supporting its staff amid soaring inflation (see article n°13222), these constant pay rises are intended to address staff shortages, as the group hopes to recruit 12,500 temporary workers over the festive period. Tesco has also announced that the next pay review will take place in January, three months earlier than usual, which could lead to a further pay rise in the spring.