Tesco Announces 500 Job Losses in Shake-up Plan

Posted by Nicole Williams on 10 January 2017

One of Britain’s biggest retailers has proposed a shake-up of its distribution network that could result in a loss of around 500 jobs, it announced in a statement on Monday.

The plan will include reducing the number of Tesco’s distribution centres from 25 to 23 in the UK, with centres in Welham Green and Chesterfield closing.

All warehouse operations that are currently carried out by logistics companies Wincanton and Deutsche Post’s DHL, will also be brought in house, whilst management structures across the network will also be simplified.

A spokesman for Tesco said that whilst the changes with result in 1,000 job losses, new roles will create 500 jobs at other sites. The company is Britain's largest private sector employer, with over 310,000 workers.

In October, Chief Executive Dave Lewis set out a plan that would see the retailer earn between 3.5p and 4p of profit for every £1 spent by shoppers, which would be a rise from the 2.18p it earns currently, as sales rise and costs are cut through efficiencies in stores and in the distribution network.