More than Carrefour's 100 year old store has laid off nearly 10000 people! HR was laid off for the first time. Tesco laid off nearly ten thousand people. What's the matter? Why is Tesco laying off nearly ten thousand people? Xiaobian and you get to know each other.
According to statistics in 2012, for every 7 yuan spent by Britons, 1 yuan goes into the cash register of Tesco supermarket.
That year was the peak of Tesco's performance, with more than 500000 employees worldwide, surpassing Carrefour (490000) and Siemens (430000), becoming the largest employer in Europe. However, since then, the business of this century old shop has begun to turn sharply.
In 2014, Tesco, which was deeply involved in the financial fraud scandal, sold its business in mainland China to China Resources Vanguard. After ten years of hard work in China, it failed. After that, Tesco lost all the way to the United States, South Korea, Japan and other markets, and its pre tax profit fell sharply from 4 billion pounds to 145 million pounds.
Against this background, Tesco has been "downsizing" vigorously in recent years, and the number of employees has decreased by about 40000 in five years. Even so, Britain's unions, government and business were shocked when Tesco announced its layoff plan on Monday.
In addition to the scale of layoffs, Tesco announced the abolition of the type of work, which aroused strong public curiosity:
HR, who used to inform others of bad news, will be the first to be laid off this time; cooked food counters and restaurants will be replaced by automatic service machines.
HR laid off for the first time, deli counter closed
Last Sunday (27), a report in the weekend edition of the daily mail made many Britons afraid that they could not have a good weekend.
Tesco will plan to cut 15000 jobs and close some of its stores, greatly reducing the opening hours of some stores, the article said. Tesco also plans to complete spending cuts by 2020, aiming to save 1.5 billion pounds (13.3 billion yuan) in costs, the report said.
BBC reported that Tesco insiders said at the time that the details of the layoff plan were still in the final stage.
On the 28th of British time, Tesco finally announced a formal plan of layoffs: it is estimated that 9000 people will be laid off, a decrease compared with the figures reported by the media; it is estimated that 90 stores will be closed, and the layout of the remaining stores will be significantly adjusted, and the business hours will be shortened; the position of the headquarters office will be simplified.
Each editor noted that in June 2018, Tesco's UK headquarters eliminated 1200 civilian staff, and this reform idea will continue in 2019. The Financial Times reported that there are 1700 HR managers, legal compliance managers and customer experience managers in Tesco's UK headquarters, which will bear the brunt of layoffs.
In addition, Tesco's meat, fish and cooked food counters in stores across the UK will be partially closed, and staff restaurants will be replaced by vending machines, with senior chefs likely to be dismissed. Tesco has 732 stores in the UK. A typical store has about five fishmongers, five butchers who cut meat, and six staff at the deli and cheese counters. They are all under pressure to lose their jobs.
Tesco's announcement said that the demand for hot food has greatly decreased in the past five years, and that customers spend less time shopping in physical stores. In response to this change, in addition to streamlining its staff, Tesco also needs to significantly adjust its store layout, business hours, warehousing and distribution processes, so as to save consumers time and labor.