Tesco PLC (LON:TSCO) is to axe 800 jobs as part of its efforts to streamline the business amid tough competition between UK supermarkets and rising cost inflation.
The company said it will remove all people managers and compliance managers from its large stores and fulfilment centres. It will also remove its customer experience managers.
The changes will impact 1,700 employees, who will be supported to find alternative roles within the business.
It will create 900 new roles across its distribution centres and stores and hopes to move those affected into these positions. However, the overall impact will result in a loss of 800 jobs.
Tesco said the action it is taking will “simplify its operational structure to improve efficiency and give line managers clearer accountability for colleague and customer experience”.
Matt Davies, chief executive of Tesco in the UK and Ireland, said: "These changes remove complexity and will deliver a simpler, more helpful experience for colleagues and customers.
“We recognise these are difficult changes to make but they are necessary to ensure our business remains competitive and set up for the future."
Tesco and the other so-called big four supermarkets, which includes WM Morrison Supermarkets PLC (LON:MRW), J Sainsbury plc (LON:SBRY) and Asda, have been losing market share to discounters Aldi and Lidl.
The fierce rivalry, coupled with higher cost inflation, has seen supermarkets rethink their business strategies by improving product ranges, slashing prices and cutting costs.