Tesco to make huge change to in-store bakeries as it plans to ‘simplify’ the business with 400 job cuts

TESCO will make a huge change to in-store bakeries as it plans to simplify its business with hundreds of job cuts.

The UK's biggest supermarket said it would cut 400 roles across its stores and also head office.

1

It's been reported that staff most impacted will be its bakery team, as the brand looks to pivot from having staff bake goods inside the supermarket.

Jobs at Tesco mobile and those in head office roles will also be cut, according to a report in The Grocer.

Matthew Barnes, chief of Tesco UK said: “These are difficult decisions affecting our colleagues, but we believe they are necessary to enable us to invest in what matters most to our customers.

“Our priority is to support impacted colleagues, and we will do everything we can to help them find alternative roles within our business. Today, we have almost 1,000 vacancies available.”

The grocery giant, which reported record breaking sales at Christmas, also said it would launch consultation of its Snodland Distribution Centre, in Kent.

It's understood from reports that Tesco would move impacted staff to another one of its centres in Aylesford.

Tesco said the grocery market was becoming more competitive than ever.

With customers feeling the squeeze, many have been choosing to shop at cheaper rivals such as Lidl and Aldi.

The firm said it had its biggest ever Christmas this past December, as shoppers splurged on its fancy Tesco finest range.

But the group also warned it was looking to make £500million in cost savings this year and would avoid passing price rises on the consumers.

It comes just days after two major supermarkets said they would cut staff roles.

Sainsbury's said it would cut 3,000 head office staff roles and also axe all remaining patisserie, bakery, rotisserie and pizza counters in its bigger branches.

Meanwhile, Morrisons said it would axe 200 roles across customer service, employee engagement and payroll.

A spokeswoman for Morrisons said it carried out a "review of its people structure" to ensure it is "offering stores and sites a timely and consistent service".

"We are therefore proposing to remove the roles of regional people manager, store people manager and case specialist from our structure, meaning colleagues in these roles are being placed at risk of redundancy."

Tesco was among 70 retailers who signed a letter to Chancellor Rachel Reeves warning that her Budget tax hikes would lead to job cuts in the sector.

Morrisons boss Rami Baitiéh, also warned that a “avalanche of costs” would hit businesses following the government’s October Budget.

Chancellor Rachel Reeves said during her autumn statement she would raise employers' National Insurance contributions (NICs).

She also announced a reduction to the threshold at which businesses start paying NI contributions from £9,100 to £5,000.

It's estimated that the move will raise £25billion - the equivalent of around £800 per employee for each firm.

At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.