Tesco plc (LON:TSCO) plans to axe 1,700 of deputy managers at its Express convenience stores and replace them with lower paid “shift leaders” as part of the supermarket’s restructuring.
The UK supermarket announced the plans in a statement today, saying it will create 3,300 shift leader roles, resulting in a net increase of around 1,500 jobs.
Tesco said the deputy managers will start a 60-day consultation process and will be offered shift leader positions, alternative roles in its other stores or a redundancy.
The decision to replace deputy managers at 1,800 Express stores will result in an increase in the number of staff serving customers on the shop floor.
The news comes after Tesco last month proposed an overhaul of its distribution network that would involve cutting 500 jobs.
Its restructuring is trying to address a fierce pricing war between the UK’s so-called ‘big four’ supermarkets –Tesco, Sainsbury’s, Morrisons and Asda – as smaller discounters, including Lidl and Aldi, take over market share. Adding pressure on the sector, a weaker pound following the Brexit vote has pushed import costs higher.
In an effort to improve its position in a highly competitive market, Tesco last month agreed a £3.7bn merger with food wholesaler Booker Group for £3.7bn. Booker is the UK’s largest cash and carry operator, supplying items to 700,000 convenience stores, grocers, pubs and restaurants.
Tesco said the deal would create the “UK’s leading food business” and expand its offering beyond its traditional food retail business.
The company reported a £162mln profit before tax in 2016, after suffering a £6.4bn loss a year earlier following a decline in sales and the discovery of a £326m accounting scandal.
Shares in Tesco dipped 0.55% to 188.95p in afternoon trading.