London, Jan 30, 2026, 09:29 GMT — Regular session
- Tesco shares rose roughly 0.6% in early trading in London
- Tesco plans to cut about 380 jobs in a UK restructuring
- Union Usdaw has announced plans to begin consultation talks on the proposals
Tesco (TSCO.L) shares ticked up roughly 0.6% to 423.0 pence by 0929 GMT, oscillating between 420.1 and 423.5 pence earlier. The stock started the day steady at 420.6 pence. 1
The announcement came alongside a modest yet wide-ranging reshuffle in the UK, involving the cut of 380 jobs, adjustments to some replenishment schedules, and the integration of in-store bakeries into about 100 Express locations. Tesco plans to begin consultations soon on closing its Hinckley distribution centre, with affected employees offered roles at a nearby new site, a company spokesperson told grocery trade site KamCity. 2
Supermarkets face a squeeze as they try to balance sharper prices with rising wage costs while maintaining service quality. On Thursday, Sainsbury’s revealed a 5% pay increase for hourly workers starting in March, raising the national base rate to £13.23 an hour and to £14.54 in London. 3
Tesco has already warned investors to brace for profit hitting the high end of its guidance, following a stronger-than-expected Christmas shopping season. On Jan. 8, it predicted adjusted operating profit near the top of its £2.9 billion to £3.1 billion range, after a 3.2% rise in underlying UK sales over the six weeks ending Jan. 3. CEO Ken Murphy described the competition as “as intense as ever.” 4
Usdaw, the union for Tesco workers, announced it will begin consultation talks following the retailer’s restructuring plans. “We will interrogate the business case,” said Daniel Adams, Usdaw’s national officer. Mark Todd added that roughly 40 distribution managers may be at risk, with about 150 night staff at Middlesbrough potentially facing redundancy. 5
The FTSE 100 ended Thursday 0.2% higher, having hit a record peak during the day. Financial and energy shares led the advance. 6
Investors are focused on how swiftly Tesco can implement the changes during consultation without affecting store stock or online delivery. The key question is whether these adjustments deliver ongoing savings or just temporary disruptions.
But there’s a clear downside. Savings from cutting staff and tweaking processes can vanish quickly if wages keep climbing and competitors push prices down, especially with shoppers remaining cautious and the sector slipping back into margin-sapping promotions.
Tesco’s Preliminary Results for 2025/26 land on April 16, setting up a key moment to scrutinize guidance, cost pressures, and any new operational moves. 7
