Tesco PLC (LON:TSCO) is reportedly planning to close some fresh food counters and bakeries, putting 15,000 jobs at risk.
According to the Mail on Sunday, the supermarket is reviewing jobs after a tough Christmas trading period for the retail sector.
READ: Tesco best of ‘Big Four’ as Christmas sales jump
The paper said Tesco is considering an overhaul of in-store bakeries, using frozen instead of fresh dough, and replacing staff canteens in some stores with vending machines.
It added that the plans would affect the majority of Tesco's 732 larger stores. Deals of the cuts are expected to be announced this week.
Chief operating officer Tony Hogett acknowledged the media speculation in a memo to staff, seen by the BBC.
"We are committed to tell our colleagues first of any changes we make as we continue to refresh and simplify the way we serve customers in our stores," he told employees.
"These changes are still being finalised, but as a result of this leak and speculation, we will bring forward our communications to give more information as soon as possible.
"We recognise that any changes will be hard for impacted colleagues, and unsettling for everyone. Our priority is to support our colleagues throughout."
Tesco plans to slash £1.5bn from its cost base as part of a restructuring led by chief executive Dave Lewis.
Since taking over as boss in 2014, Lewis has cut more than 10,000 jobs to reduce costs amid tough competition between supermarkets.