Tesco (LON:TSCO) is planning to slash 1,700 roles as it looks to simplify its operational structure, the blue-chip supermarket has said. The move comes after Britain’s biggest grocer recently updated investors on its performance, revealing a rise in sales during the third quarter of its financial year and the crucial Christmas period.
Tesco’s share price closed little changed yesterday, shedding 0.38 percent to close at 207.00p. The shares marginally underperformed the broader UK market, with the benchmark FTSE 100 index ending the session 0.20 percent in the red at 7,715.44 points. The group’s shares have added more than four percent to their value over the past year, as compared with more than a seven-percent rise in the Footsie.
Grocer unveils shake-up
Tesco announced in a statement yesterday that it was planning to simplify its operational structures to improve efficiency and give line managers clearer accountability. As part of the changes, the company will remove the role of People Manager and Compliance Manager from large stores and fulfilment centres in the UK, as well as the role of Customer Experience Manager, present in 226 stores.
The changes will affect 1,700 staff, who will be supported to find alternative roles within the business wherever possible. As a result of the changes, 900 new roles with broader remits will be created as People Partners, Learning Partners and Colleague Relations Partners, resulting in cutting a net 800 jobs.
Analysts on Tesco
The 15 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 215.00p on the shares, with a high estimate of 270.00p and a low estimate of 170.00p. As of January 20, the consensus forecast amongst 20 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.