Tesco to axe hundreds of staff as retail giant struggles to recover from profits scandal
Eight executives were suspended and the Serious Fraud Office has launched an investigation amid claims Tesco “over-stated” half year profits by £263million
Struggling Tesco is tipped to axe hundreds of back office staff this week.
The cost-cuts come as Britain’s biggest supermarket chain battles to recover from a crisis sparked by “over-stating” half year profits by £263million.
Eight executives were suspended and the Serious Fraud Office is probing the affair. Chief executive Dave Lewis will set out his recovery strategy on Thursday.
The cost saving, which is expected to see jobs go at Tesco HQ in Cheshunt, Herts, and closure of some regional offices, will make it easier to offer price cuts.
Action: Tesco Chief Executive Dave Lewis has drawn up a recovery plan
Retail analyst Clive Black of Shore Capital said: “Profits have collapsed over the last three years.
“For the first time we expect Tesco to make a loss in the second half of the current financial year. Action has to be taken.”
Retail experts said cuts would beline with what was expected. Tesco refused to comment yesterday.