2,100 Tesco Supermarket Job Cuts – Major Changes To Management Structure

The UK's largest supermarket chain, Tesco, recently announced the prominent changes in its organizational structure. As a result, almost 2100 jobs will be affected. The reason behind these changes is to make operations easy and provide better services to the consumers.

Changes in management structure

Tesco has decided to reorganise the administrative structure in its big stores like supermarket stores and extra stores. Under this plan, 1750 positions of team managers will be eliminated, while 1800 new positions of “shift leaders” will be introduced. The role of shift leaders will be the check and balance of the daily store operations. Those team managers who will accept the new shift leader positions their salaries will frozen for two years.

Closure of counters and hot delis

Tesco announces that they will close their remaining meat, fish and hot deli counters from 26 February. According to the company, the demand for these counters has decreased towards consumers that's why this decision has been taken. Affected employees will be offered other positions in the company.

Other changes

Moreover, Tesco also announced the following changes:

Closure of eight pharmacies
In 12 stores converting night shifts into day shifts
Reduced working hours of some post offices
Elimination of some positions in the head office
Closure of the existing Maintenance National Operating Center in Milton Keynes.

With these changes, 350 more employees will be affected.

Employee support

Tesco says that they are determined for the help of defective employees and tried to adjust them in 2000 free positions in the company or will try to transfer to newly created roles. The company has started a process of consultation with the union "USADA" to make the process fair and transparent.

Market competition and financial pressures

On the behalf of Tesco, these steps are being taken at such a time when the competition is increasing in the UK grocery market. Especially from discount retailers such as Aldi and Lidl. In addition, in recent Government Budgets for Employer National Insurance Contributions and the increase in the minimum wage have put an additional financial burden on companies. According to these factors, Tesco to make its operations more efficient and to reduce the cost take these steps.

Effects on consumers

Tesco has assured that the reason for these changes is to provide better services to consumers. And Tesco will retain its product range, including the "Finist" line. The company says that it keeps in mind the needs and preferences of its customers committed to continuously improving its offering.

Plans for the Future

Tesco plans that it should save £500 million in costs so that the rise in prices can be minimized as much as possible. The company has also emphasized that it will do everything possible to help the affected employees and offer them alternate roles.