Tesco jobs under threat

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Troubled British supermarket giant, Tesco, says it may axe as many as 2000 jobs under plans to shut 43 stores in a company wide overhaul.

A spokesman for Tesco, which revealed the closures earlier in January, confirmed that 2000 jobs were under threat but added that staff would be consulted in a bid to find alternative roles wherever possible.

“We will be speaking to them over the coming weeks,” he said adding that there will be “a number of options” for affected staff including redundancy.

Tesco had unveiled cost cutting plans to shut the 43 unprofitable branches, sell assets, and axe its shareholder dividend in a bid to revive its fortunes after an accounting scandal.

“The decision to close the stores has been exceptionally difficult to take. I recognise it will affect many hard working colleagues, our customers and local communities,” Tesco CEO, Dave Lewis, said on Wednesday.

“Our priority is to explain what this announcement means for our colleagues and, wherever possible, offer them alternative roles with Tesco.”

The group also decided earlier in January to slash capital expenditure, revise its store building program and sell its broadband internet arm, its TV streaming service Blinkbox, and its Dunhumby data analytics business.

Tesco, suffering from fierce competition in Britain from supermarket price wars and German-owned discounters Aldi and Lidl, also faces various probes after the giant admitted in October to having overstated its profits by STG263 million pounds ($A502.68 million) as a result of accounting errors.

AFP

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