Tesco to cut 1,200 head office jobs in cost-cutting drive

Tesco is planning to axe 1,200 jobs at its head office as it charges ahead with its cost-cutting drive.

The company, which just last week announced 1,100 jobs would be lost at a call centre in Cardiff, informed staff of the decision at the Welwyn Garden City and Hatfield offices earlier on Wednesday.

A spokesperson for the supermarket operator said: "Today we have shared with colleagues across Tesco changes that we plan to make to the way we operate our business. This is a significant next step to continue the turnaround of the business.

"This new service model will simplify the way we organise ourselves, reduce duplication and cost but also, very importantly, allow us to invest in serving shoppers better. We have made good progress so far in our turnaround but we have more to do. We will work with colleagues to support them as we go through this important transition.”

Jobs will be cut across a range of functions including finance, property, buying and marketing.

Earlier this month, Tesco said it had seen a strong start to its new financial year, delivering first-quarter UK sales ahead of City expectations despite current tough conditions for the wider retail industry.

At 1410 BST, the shares were up 1.5% to 171.60p.