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Lewis wielding axe at supermarket group

Job losses at Tesco expected to hit 10,000 in bid to turnaround ailing chain

TescoTesco is planning to take its job cuts to 10,000 across its head office and stores portfolio in the latest move by the struggling supermarket chain to cut costs.

Up to 6,000 are already been negotiated at the 43 stores scheduled for closure and at various offices around the country. It is now claimed that more will go by removing layers of management.

The cuts are said to be in keeping with targets met by chief executive Dave Lewis when he was at Unilever, according to the Sunday Telegraph. Tesco is not alone in making drastic cutbacks. Its big four rivals Asda, Sainsburys and Wm Morrison are also announcing thousands of job cuts as they try to compete with discount chains Aldi and Lidl.

Tesco is Britain’s biggest retailer and private sector employer with more than 310,000 staff working at 3,330 stores.

In better news, the market retail analyst Kantar said Tesco sales grew recently for the first time in a year.

However, earlier this month the Groceries Code Adjudicator announced it would be investigating Tesco’s relationship with its suppliers amid allegations that it was putting them under pressure to comply with certain orders that breached the code, such as delayed payments.

Tesco is also under the scrutiny of the Serious Fraud Office and the Financial Reporting Council over accounting errors that led to a huge black hole in its profits.

John Allan, the chairman of housebuilder Barratt Developments, is favourite to replace Sir Richard Broadbent as chairman after Sir Ian Cheshire, the former boss of DIY retailer Kingfisher, pulled out.

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