Tesco announces hefty job cuts

What are the supermarkets future plans?

Tesco has said 1,000 people will be made redundant as part of an overturn of its distribution network.

The company have been making the changes over 2 years and form part of a new transformation.

The changes will see the number of Tesco distribution centres fall to 23 rather than the current 25 it has in the UK.

Despite the cuts, Tesco have said they will be creating 500 new jobs as part of the upcoming changes which are expected to be in place by June.

The news comes as Tesco is about to release information on its sales over the Christmas period, the Trading Statement will be issued on Thursday.

The supermarket has been struggling to maintain its market share due to competition from German discounters Aldi and Lidl. Tesco’s three main rivals, Sainsbury’s, Asda and Morrisons have also felt the same affect.

The fall in the pound after the Brexit vote will also hit the supermarkets as the cost of imported products becomes more expensive when priced in the sterling.

Retail analyst Steve Dresser tweeted about the Tesco plans, he said: “One has to hope it’s not cost-driven and is naturally occurring, given their better operation in stores,”

“Taking away depots and logistics flexibility whilst also taking store night-fill away could leave things very tight indeed.”

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