UK supermarket chain Tesco plans to cut 400 jobs in a strategic move to streamline its operations. 

The layoff will impact management positions at its head office, managers at Tesco Mobile locations and employees in its in-store bakeries.  

It will also affect its administrative centre in Welwyn Garden City, Hertfordshire.  

The decision comes in response to the increasingly competitive market, which has forced the company to explore new methods of investing in its value proposition. 

Tesco CEO Matthew Barnes was quoted by the BBC: "These are difficult decisions affecting our colleagues, but we believe they are necessary to enable us to invest in what matters most to our customers. 

"Our priority is to support impacted colleagues, and we will do everything we can to help them find alternative roles within our business. Today, we have almost 1,000 vacancies available." 

At the same time, Tesco announced it would commence consultations regarding the closure of its Snodland Distribution Centre in Kent.  

This follows a previous initiative to develop a new distribution hub three miles away in Aylesford, offering advanced technology and enhanced amenities for staff.  

Tesco gave assurances that opportunities would be available for all Snodland employees at the new location. 

These announcements follow a strong festive season 2024 performance from the retailer, which reported an increase of 3.7% in like-for-like sales for its UK and Ireland division over the six weeks ending 4 January 2025 with unprecedented activity observed in the week leading up to Christmas. 

The news arrives amid similar industry trends, as rival Sainsbury’s recently disclosed its intention to shed 3,000 jobs. 

Sainsbury’s noted that the cuts are part of its broader effort to simplify operations while dealing with escalating expenses, including a significant £140m rise in employer national insurance contributions in April 2025.