Tesco to cut 1,200 jobs at head office in bid to slash costs

The news comes after Tesco announced last week that 1,100 jobs would go as it shuts its call centre in Cardiff

(AFP/Getty (AFP/Getty)

Tesco is cutting 1,200 jobs at its head office as part of a wider cost-cutting programme.

The UK's biggest retailer told affected staff on Wednesday morning that it would reduce headcount by 25 per cent at offices in Welwyn Garden City and Hatfield.

The news comes just a week after Tesco announced that 1,100 jobs would go as it shuts its call centre in Cardiff.

“This is a significant next step to continue the turnaround of the business. This new service model will simplify the way we organise ourselves, reduce duplication and cost but also, very importantly, allow us to invest in serving shoppers better,” a spokesperson for the company said.

“We have made good progress so far in our turnaround but we have more to do. We will work with colleagues to support them as we go through this important transition.”

Earlier this month, Tesco reported its strongest quarterly UK sales performance in seven years, despite the increasingly inflationary trading environment.

The supermarket, which in January agreed to buy wholesaler Booker for £3.7bn, said UK like-for-like sales rose 2.3 per cent in the 13 weeks to 27 May. That was well above analysts’ estimates and meant a sixth straight quarter of growth.

Retailers are battling rising import prices, caused in large part by the fall in the pound since last year’s vote to leave the European Union.

Official data released this month showed real UK wages are shrinking and retail sales fell more sharply than expected in May.