Tesco plc (LON:TSCO) are set to cut around 1700 deputy manager jobs at its Tesco Express locations, in a bid to restructure its businesses.
The move is set to replace Deputy Manager roles with lower paid “shift leader” positions. Despite the reduction in Manager roles, the change is set to create around 3,300 net jobs as “shift leaders” increasing its workforce by 1,600, albeit at a lower wage. To facilitate the initiative, current deputy managers are set to receive new roles or redundancy payments.
Tracey Clements, managing director of the supermarkets convenience locations, said:
“To help improve our service to customers in our Express stores we are aiming to have more of our colleagues on the shop floor, more often.”
“We appreciate that these changes will impact our deputy manager colleagues, and will do everything we can to support them throughout this period.”
This follows a continually challenging and competitive market for Tesco, who reported a modest rise in revenue of 0.7 percent across the usually profitable festive period. Most recently, the supermarket giant announced a merger with Britain’s largest wholesaler Booker (LON:BOK) in a deal worth £3.7 billion.
The move has been envisaged as a way to fight off competition from discount retailers such as Aldi and Lidl, which have in recent years increasingly taken a market share from the UK’s top supermarkets. The deal is projected to be completed during the latter course of the year or early in 2018, and cost saving as a result of the merge are predicted to total £175 million a year.
Similarly, the more “upmarket” Waitrose supermarket announced the closure of 6 supermarkets and alongside the removal of certain management tiers, which is set to affect 700 jobs. In addition, the supermarket announced the end of 180 department manager roles in its various 350 stores across the UK.
Shares in Tesco plc are down 0.19 percent as of 11.12AM (GMT).