The biggest supermarket chain in UK, Tesco plans to cut its workforce by 39,000 in the next three years. Doing so, the company expects to check its slumps in profits. This means that the supermarket will let go one in six employees. The cut would either affect their jobs or result in reduction of working hours.
This was revealed in a leaked document which the company validated. But Tesco have not yet announced the job cut scenarios. The supermarket chain, which has a workforce of more than 300,000 people in the UK had cut employment previous year as well. Tesco CEO Dave Lewis, in a bid to turn around the company’s financial performance scraped these positions.
The retailer reported a £6.4bn pre-tax loss last year, one of the biggest in British corporate history. Tesco’s large out-of-town supermarkets have suffered as British households have changed shopping habits, moving away from buying food in one weekly shop and turning increasingly to convenience stores, online and the discounters Aldi and Lidl. Tesco is also being investigated by the Serious Fraud Office after a £326m black hole was discovered in its accounts. The proposals are part of a programme called “Project Pace”, according to the document. An extract was posted on the website verylittlehelps.com, a forum used by Tesco staff.