LONDON – Tesco is planning to axe 1,200 jobs at its head office, according to the Press Association.
The news comes after the company announced it was cutting night shifts in some of its largest stores as part of cost-cutting measures, which could impact up to 3,000 jobs. More than 10,000 roles have been cut since Dave Lewis took over as chief executive at Tesco in 2014.
Tesco has suffered this year from an enormous £235 million fine to settle the accounting scandal – in which it overstated profits by more than £300 million – and its shares tumbled earlier in June after the news that online retailer Amazon had bought Whole Foods. But Tesco reported a rise of 3.5% in sales for the 12 weeks to 18th June, the fastest rate since 2012.
In order to compete better with Amazon, Tesco unveiled on Monday plans to launch a one-hour delivery service to customers in central London, after which share prices rose.
“Shoppers’ needs are changing and we want to offer a range of services that allow them to shop with us in a way that suits their needs,” said Adrian Letts, managing director at Tesco.
Here is the chart of Tesco’s share price performance over the past month:
“It’s sad but not surprising that Tesco are making job cuts at its head office. Last week Tesco said they needed to remain “sustainable and cost effective” and this is evidently their way of streamlining the business,” said Hannah Maundrell, editor in chief of money.co.uk.