Tesco PLC (LSE:TSCO) is planning on cutting hundreds of head office jobs after warning profits would be hit by inflation.
UK’s biggest retailer is aiming to make £500mln in savings this year, with plans including consultation on 325 job cuts in head and regional office management teams.
Also included in the measures are more automated tills and a reduction in the number of suppliers after the company posted profits falling nearly 64% in its half-year results.
Tesco said it hopes those losing their jobs could move into other positions at head office.
While cutting jobs, Tesco is raising the pay for its shop workers for the third time in 13 months as it aims to keep a hold of its employees.
The ‘big four’ in the grocery sector, including J Sainsbury PLC (LSE:SBRY) and Aldi, have all increased employees' wages in recent weeks.
Asda, however, has been criticised for being the “worst paying” big four grocer, according to trade union GMB.
“It should be a source of massive shame for Asda they are now the worst paying of the Big 4,” GMB national officer Nadine Houghton said.
“Only last week Asda refused a meeting with GMB representatives to discuss the important issue of pay.
“While other companies are trying to protect hard-working employees from the cost-of-living crisis, Asda seems happy to sit back while its workers struggle.”