Lewis wielding axe at supermarket group
Job losses at Tesco expected to hit 10,000 in bid to turnaround ailing chain
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.
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.