Tesco and Sainsbury’s in management restructuring

Both Tesco and Sainsbury’s have set out plans for management restructuring to make the businesses more competitive.

Tesco is cutting 1,700 jobs across its stores and distribution centres – and creating 900 new roles as part of a plan to simplify its operational structures.

Sainsbury’s is proposing a new store management structure, but says it has no intention of cutting headcount.

At Tesco, the role of people manager and compliance manager will be removed from large stores and distribution centres, as will the role of customer experience manager, which exists in 226 stores.

The 900 new roles will have broader remits. They include: people partners, learning partners and colleague relations partners working across multiple sites throughout distribution, stores and fulfilment. A new colleague administration role will also be created to support management teams in each large store and fulfilment centre.

Tesco’s UK chief Matt Davies said: “These changes remove complexity and will deliver a simpler, more helpful experience for colleagues and customers. We recognise these are difficult changes to make but they are necessary to ensure our business remains competitive and set up for the future.”

Simon Roberts, retail and operations director of Sainsbury’s, said: “We’re proposing a store management structure that will deliver best in class leadership and, in many cases, will offer an improved reward package for new management roles.

“The proposals will introduce a more efficient and effective structure, designed to meet the challenges of today’s retail environment. They will deliver cost savings to be invested in our customer offer and in our colleagues as they continue to provide the very best service for our customers.

“Our intention is not to reduce overall headcount as a result of these proposals.

“I appreciate this will be a difficult time for those affected and we will fully support our people through these changes.”