Tesco to axe 1600 jobs as it brings overnight restocking to an end

Tesco to axe 1600 jobs as it brings overnight restocking to an end

by Pranali Mehta

Tesco, the British groceries retailer, has reportedly warned that around 1600 jobs are at risk of turning redundant as it plans to phase out overnight restocking at select stores and convert some of its petrol stations to pay-at-pump at night.

The move come just a day after the retailer revealed that its Jack's discount sites will be closing.

It claimed that restocking racks during the daytime would allow more employees to be on the store floor during peak hours.

Jason Tarry, Tesco’s CEO, UK & ROI, stated the decision will make the company's operations as simple and efficient as possible.

As such, overnight restocking will be moved to the daytime in over 36 major supermarkets as well as 49 convenience stores.

In addition, the company also plans to turn 36 fuel stations to pay-at-pump exclusively during night hours.

Tarry added that Tesco operates in a very fast-paced and competitive market where the consumers shop differently, particularly since the COVID-19 pandemic.

The supposed move is however only the first in Tesco’s series of restructurings.

Tesco has restructured or terminated thousands of job roles over the past few years as it revamps its store operations to simplify the business. All of the company’s large rivals have taken similar steps as they attempt to compete with Lidl and Aldi.

Tesco, like the other retailers, had a good Christmas season and during the pandemic, but it is still experiencing higher costs in business aspects ranging from freight and raw materials to worker pay hikes.

Tesco declared last fall that it will save £1 billion over three years to balance inflation and also make investments to maintain a competitive edge.

One of the major difficulties for retailers this year will be cost management, and like Tesco, they all will be seeking solutions to become even more efficient.

Daniel Adams, retail trade union national officer at Usdaw, stated that Tesco's reorganization plans will be upsetting for individuals who may be impacted and that the contributions they made throughout the course of the pandemic should not be forgotten.

Tesco stated that it has roughly 3,000 vacancies across the company and that it sought to provide alternative Tesco positions for as many people as it can.

Source credit: https://www.bbc.co.uk/news/business-60213085

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...