Tesco to Cut 1,800 Jobs in Bakery Revamp

(Bloomberg) --

Tesco Plc said more than 1,800 jobs are at risk as it revamps its bakery operations to adapt to a growing taste for fresh sourdough, wraps and flatbreads amid falling demand for that traditional British favorite, the scone.

The U.K.’s largest supermarket plans to reduce the amount of baking from scratch in more than 200 outlets as it cuts overlap and waste, a spokesman said. Falling sales of scones means it’s no longer necessary to offer both packaged and freshly baked varieties, he said.

Some stores will reduce or eliminate items baked from scratch as Tesco shifts toward more “part-baked” products that are finished in supermarkets.

Tesco, which has about 300,000 employees overall, said the simplified processes mean fewer workers are needed. It’s only the latest of several moves to streamline the stores, with thousands of jobs being eliminated last year as the company shut down fresh fish and meat counters, among other services, in some of its supermarkets.

Tesco’s rivals, including J Sainsbury Plc and Wm Morrison Supermarkets Plc, have also been cutting roles as store operations are simplified.

To contact the reporter on this story: Deirdre Hipwell in London at dhipwell@bloomberg.net

To contact the editor responsible for this story: Eric Pfanner at epfanner1@bloomberg.net

©2020 Bloomberg L.P.