Business Irish

Thursday 12 December 2019

Up to 70 redundancies on cards at Tesco as company consults with staff

John Mulligan

John Mulligan

Tesco is planning to offer some of its departmental managers in Ireland voluntary redundancy.

It’s believed that as many as 70 roles could be affected, but industry sources reckon the figure could be higher.

There are usually at least five departmental managers in a typical supermarket. Tesco operates just over 100 supermarket or extra-size stores here and nearly 40 smaller format outlets.

Tesco confirmed that departmental managers are to be impacted by a recent review but declined to say how many might be affected - the company employs 15,000 here in total.

“We keep the structures of our business under constant review to ensure that we offer the best possible service to customers,” said a spokesperson for the retailer.

“Following a recent review, a small number of roles in our stores are changing in order to ensure that we have more colleagues on the shop floor helping customers,” she added.

“We are in early stage discussions with some of our department managers in stores to see if any wish to be redeployed to other roles or whether any would wish to apply for voluntary redundancy.”

The review is unconnected with the accounting scandal that has struck Tesco’s operations in the UK.

This week, the group admitted it found a £250m black hole in its accounts related to the first half of its financial year. Four senior executives have been asked to step aside while a probe gets underway.

Getting more staff on the shop floor was a key strategy of former Tesco chief executive Philip Clarke, who was trying to stem sales declines in the face of stiff competition from Aldi and Lidl. He had also earmarked over £1bn to revamp stores in the UK.

But Mr Clarke resigned in the summer as investors tired of waiting for the promised turnaround to happen. He was succeeded by former Unilever senior executive Dave Lewis.

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