Tesco to close remaining counters and hot delis affecting over 2,100 jobs

RUGELEY, ENGLAND - NOVEMBER 23: :  A general view outside Tesco supermarket store on November 23, 2022 in Rugeley, England. (Photo by Nathan Stirk/Getty Images)
Tesco has announced a major restructuring of its shop management roles. Photo: Nathan Stirk/Getty Images (Nathan Stirk via Getty Images)

Tesco (TSCO.L) has announced a major restructuring of its shop management roles and said that it will shut all remaining counters and hot delis in an overhaul which will impact around 2,100 jobs across the UK and Ireland.

Tesco UK and ROI chief executive officer, Jason Tarry, said: “These are difficult decisions to make, but they are necessary to ensure we remain focused on delivering value for our customers wherever we can, as well as ensuring our store offer reflects what our customers value the most.

"Our priority is to support those colleagues impacted and help find alternative roles within our business from the vacancies and newly created roles we have available.”

Tarry said the company is reducing lead and team manager positions in large stores, affecting 1,750 workers, as part of a management restructuring.

The move will introduce 1,800 new shift leader roles in stores.

Tesco will also close its remaining counters and hot delis at stores on 26 February, affecting an unknown number of workers.

The company cited a significant decrease in demand for its counters over the years, as customers opt to purchase from regular aisles instead.

Watch: Tesco says management shake-up and hot counter closures to leave 2,100 roles at risk

The retailer stated that all affected workers will be offered alternative roles, while 350 workers will be impacted by changes such as the closure of eight pharmacies and reduced hours at some in-store post offices.

The restructuring will affect all of the company's larger superstores and Tesco Extra stores.

Tesco are also reportedly in advanced talks to buy stationary retailer Paperchase.

Tesco Extra supermarket store interior Fresh Food Counter back view woman shopper customer being served meat products early morning London England UK
Tesco will close its remaining counters and hot delis at stores on 26 February. Photo: PA/Alamy (Justin Kase z12z)

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This could lead to layoffs at Paperchase, as Tesco is not likely to keep any Paperchase stores in an acquisition deal, leading to potential job loss for most workers.

This follows a report from Sky News that Paperchase was close to administration with no sign of a rescue deal.

No information on other bidders for the brand were available, as of Tuesday morning.