25th Feb 2020 14:42
(Alliance News) - Tesco PLC said Tuesday it has placed 1,816 jobs at risk of redundancy as it looks to make changes to its large in-store bakeries from May onwards.
The FTSE 100 supermarket chain said it will continue to offer baking from scratch in 257 stores, but in 201 stores some products will be part-baked, while the most popular products continued to be baked from scratch.
In 58 stores, the bakery will be converting to full bake-off, where all products are delivered pre-prepared, then baked and completed in-store.
Tesco said this change is in response to a "big shift in customer tastes and preferences", namely in fewer purchases of traditional loaves of bread, compared to growing sales of wraps, bagels and flatbreads.
However, due to some stores doing less scratch baking, as well as the introduction of more simplified routines, fewer workers will be needed in these areas.
"We need to adapt to changing customer demand and tastes for bakery products so that we continue to offer customers a market-leading bakery range in store. We know this will be very difficult for colleagues who are impacted, and our priority is to support them through this process. We hope that many will choose to stay with us in alternative roles," said Jason Tarry, chief executive for the UK & Republic of Ireland.
Shares in Tesco were down 1.5% at 245.60 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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