Tesco to cut over 300 head office roles amid soaring inflation

Tesco is set to cut over 300 jobs from its head office as part of a major shake up after warning that profits would be impacted by soaring inflation.

The news came at the same time as Tesco announced that it would be increasing the hourly wage for its shop workers as a result of the cost-of-living crisis.

From 13 November, the basic hourly rate of pay in Tesco stores will increase by 20p to £10.30 (or £10.98 in London), taking the total pay rise this year to 8%. Those in the group’s booker wholesale business will receive a 25p-an-hour rise to a minimum of £10.

The retailer, which is aiming to make £500m of savings this year, began a consultation on 325 job cuts in head office and regional management teams in the past fortnight.

Ken Murphy, chief executive, said: “We know our customers are facing a tough time and watching every penny to make ends meet. As we look to the second half, cost inflation remains significant, and it is too early to predict how customers will adapt to ongoing changes in the market.

“Despite these uncertainties, our priorities are clear. We have the right long-term strategy and we will continue to balance the needs of all of our stakeholders.”

A Tesco spokesperson told Retail Sector: “Last month we announced some changes to a small number of roles in our office and regional teams, to ensure our business is as simple and efficient as possible, and so we can continue to invest for our customers.

“This means a reduction of around 325 roles. We currently have over 500 vacancies in our office and will work with colleagues to find alternative roles wherever possible.”