Tesco to make huge change to in-store bakeries as it plans to ‘simplify’ the business with 400 job cuts

TESCO will make a huge change to in-store bakeries as it plans to simplify its business with hundreds of job cuts.

The UK's biggest supermarket said it would cut 400 roles across its stores and also head office, making it the latest grocer to reveal plans to let staff go.

It's been reported that staff most impacted will be its bakery team, as the brand looks to pivot from having staff bake goods inside the supermarket.

However, the the supermarket chain told The Sun that there will be no change to its bakery range and customers will still be able to access all of the usual baked goods including its Finest range.

Jobs at Tesco mobile and those in head office roles will also be cut, according to a report in

Matthew Barnes, chief of Tesco UK said: “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.”

The grocery giant, which reported record breaking sales at Christmas, also said it would launch consultation of its Snodland Distribution Centre, in Kent.

It's understood from reports that Tesco would move impacted staff to another one of its centres in Aylesford.

In a statement, Tesco said the grocery market was becoming "more competitive than ever".

With customers feeling the squeeze, many have been choosing to shop at cheaper rivals such as Lidl and Aldi.

Tesco enjoyed its biggest ever Christmas this past December, as shoppers splurged on its fancy Tesco finest range.

But the group also said it was looking to make £500million in cost savings this year and would look to avoid passing price rises on the consumers.

It comes just days after two major supermarkets said they would cut staff roles.

Sainsbury's said it would cut 3,000 head office staff roles and also axe all remaining patisserie, bakery, rotisserie and pizza counters in its bigger branches.

Meanwhile, Morrisons said it would axe 200 roles across customer service, employee engagement and payroll.

Tesco was among 70 retailers who signed a letter to Chancellor Rachel Reeves warning that her Budget tax hikes would lead to job cuts in the sector.

Top boss Ken Murphy also said that hikes to National Insurance would £250million to retailers wage bill.

Morrisons boss Rami Baitiéh, also warned that a “avalanche of costs” would hit businesses following the government’s October Budget.

Chancellor Rachel Reeves said during her autumn statement she would raise employers' National Insurance contributions (NICs).

She also announced a reduction to the threshold at which businesses start paying NI contributions from £9,100 to £5,000.

It's estimated that the move will raise £25billion - the equivalent of around £800 per employee for each firm.

At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.

TOUGH TIME FOR SUPERMARKETS

It comes just days after Sainsbury's revealed it would axe 3,000 head office roles and wind up its hot food and bakery counters.

It will see about 20% of senior management roles cut at the supermarket giant as part of plans to focus on fewer, bigger roles and to simplify its head office and management teams.

The cuts come after Sainsbury’s announced its “biggest ever” Christmas trading period and said profit for the full-year would likely be between £1.01 billion and £1.06 billion earlier in January.

But the supermarket is also trying to cut costs by £1 billion-a-year, and last year it cut about 1,500 roles, mostly from a contact centre in Cheshire.

The company said in late 2024 that tax increases from the October Budget would hit it with an extra £140million in costs, warning that the changes would also lead to higher inflation.

It also marks a major change for its supermarkets, which will now no longer serve patisserie, bakery, rotisserie and pizza counters.

Chickens usually sold at the rotisserie counters will be shifted to hot cabinets next to sandwich fridges.

This rule only applies to larger supermarkets, with smaller formats not impacted.

Meanwhile its remaining cafes will close after less of its loyal customer base was using them.

You can read the full list of closures here.

Alongside job cuts, Morrisons also said it would said it would scale back operations at its Rathbones bakery hub in Wakefield.

The 28,000 square foot facility will stop making specialist bakery products and pump out less produce.

It also sold off 337 petrol stations in a £2.5billion deal to help pay down debts.

The group has been under increased pressure following the rise of German discounters.

Almost three years ago, it was overtaken by Aldi as the UK's fourth largest supermarket.