In the News
Thousands of Tesco Jobs at Risk
27th January 2019
Tesco is reported here to be making additional significant cost savings, including delayering & removal of specialist fresh food counters such as the deli, butchers and fishmongers. This is all part of a trying to compete with the true low-cost "deep discounter" supermarkets like Aldi and Lidl.
CEO Dave Lewis is certainly not holding back in plans to control operating costs in the face of severe pricing pressures. But should these plans have leaked in the media before employees and their representatives are told?
Kotter & Schlesinger would argue that change management can be best achieved with effective communication and engagement with employees. On this occasion Tesco would appear to have got it wrong. Going to be an interesting story for A2 #Business to follow.... https://t.co/bzUZ8FkfvU
— Mr Graham (@GrahamBusEcon) January 27, 2019
Tesco's share of the UK grocery sector has continued to decline - dropping from 29 percent in 2015 to 27.4 percent in the autumn of 2018.
Last year, Tesco spent £4 billion to acquire the wholesaler Booker in a move designed to shore up their lead position in food retailing in the UK.
#Tesco is trying to cut costs by £1.5 bn, so says it's always looking at ways to run the business "more simply and efficiently". The union @UsdawUnion is yet to comment (to the anger of workers), but the actual number of job losses is expected to be lower than the reported 15,000
— Rob Young (@robyounguk) January 27, 2019
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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