Tesco plans to cut 400 jobs in UK stores and its head office as part of efforts to improve efficiency. The move is part of the retailer’s overall plan to make it more efficient in a highly competitive retail market.

Employees in Tesco Mobile stores, in-store bakeries, and managerial roles at the supermarket’s headquarters are among those affected. According to a statement, the company is focusing on “more efficient ways of working” as it adapts to changing economic conditions and consumer demands.

The restructuring would entail changes to the bakery operations in some locations and management adjustments inside the Tesco Mobile outlets. Such changes are meant to enhance the overall business model, thus ensuring sustainability in the long run.

The UK chief of Tesco, Matthew Barnes, indicated that the cuts would pose challenges to the business in question but were necessary. “These are tough decisions affecting our colleagues, but we believe they are essential to enable us to invest in what matters most to our customers,” he said. In relation to ensuring that affected employees find alternative roles within the company, he assured that the firm would be supportive, pointing out that almost 1,000 vacancies were already available.

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Together with these job losses, Tesco is launching consultation on the possible closure of its Snodland distribution centre in Kent, which would further trim its workforce.

Tesco was able to claim record sales for the 2024 holiday season, the company’s most successful Christmas ever. The retailer increased its share of the UK grocery market to the highest level since 2016. Tesco’s sales, excluding fuel and VAT, were up 3.7% in the six weeks running to January 4, with peak trading over the final days before Christmas.

Tesco’s announcement follows a similar move by Sainsbury, which recently confirmed plans to eliminate 3,000 jobs across its UK stores. Waves of layoffs among the retail giants have a different motivation, tied with the broader economic pressures and industry dynamics undergoing a change as companies seek to optimize their operations amid increasing costs and changing consumer behaviors.