Tesco Cuts 1,200 Jobs in Head Office

By Saabira Chaudhuri Features Dow Jones Newswires

Tesco PLC is cutting 1,200 jobs at its head office, the latest round of cuts as the supermarket chain works to turn around its performance under Chief Executive Dave Lewis.

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"This new service model will simplify the way we organize ourselves, reduce duplication and cost but also, very importantly, allow us to invest in serving shoppers better," said a spokesman.

Under Mr. Lewis Tesco has worked to simplify its pricing, improve customer service, expand its online delivery service and put more staff on the shop floor.

Grocers in the U.K.--a highly consolidated food retail market--have for years been battling against one another in a fierce price war. Following Brexit, and sterling's consequent slump, chains are now facing a further headwind: higher costs that are forcing up prices.

"We have made good progress so far in our turnaround but we have more to do," said the spokesman.

The 1,200 cuts at its head office in Welwyn Garden City, just north of London, are just the latest in a string of redundancies Tesco has pushed through since Mr. Lewis took over. Britain's largest grocer earlier this month said it would close its call center in Cardiff, Wales, impacting up to 1,100 jobs. In April the company said it was cutting night shift roles.

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Write to Saabira Chaudhuri at saabira.Chaudhuri@wsj.com

(END) Dow Jones Newswires

June 28, 2017 07:45 ET (11:45 GMT)