Tesco could be about to swing the axe over 10,000 jobs in an attempt to turn around the supermarket in light of sliding profits.
According to the Sunday Telegraph, 6,000 staff will be let go from Tesco’s head offices, while a further 4,000 jobs will be lost as part of an overhaul in the way stores are run. A whole level of management is tipped to be removed from the retailer’s 3,330 stores by chief executive Dave Lewis.
However, while Tesco confirmed to Drapers that while there will be job cuts, the business is yet to put a number on the amount.
It is the retailer’s latest bid to recover from the fallout of its profits scandal. Last month, the embattled chain announced a series of cost-cutting measures aimed at recouping £250m, which included the closure of 43 unprofitable stores, cancelling 49 upcoming openings and the relocation of its Cheshunt headquarters to Welwyn Garden City in 2016.
According to the report, consultations at the head offices began at the end of January, with staff offered the chance to apply for voluntary redundancy. The removed store managers will be offered alternative roles.
Tesco is the UK’s biggest private sector employer, with more than 310,000 employees. It is still looking for a new chairman to replace Sir Richard Broadbent, who announced in October 2014 that he would step down following the scandal. Former Asda boss and current ITV chairman Archie Norman is among the rumoured shortlist of names, alongside the recently departed chief executive of Kingfisher Sir Ian Cheshire, and John Allan, chairman of housebuilder Barratt Developments.