Type
Closure
Country
United Kingdom
Region
Wales; East Wales; Cardiff and Vale of Glamorgan
Location of affected unit(s)
Cardiff
Sector
Administrative Services
Office Administrative, Office Support And Other Business Support Activities
Activities Of Call Centres
82.20 - Activities of call centres

1,100 jobs
Number of planned job losses
Job loss
Announcement Date
21 June 2017
Employment effect (start)
1 February 2018
Foreseen end date

Description

Supermarket company Tesco has announced plans to close one of its two UK contact centres with the loss of 1,100 jobs. Work will stop at the company's site in Cardiff in February 2018, and its calls will be handled from the firm's other centre in Dundee. Some affected staff may be offered the opportunity to relocate to the Dundee operations, though given the distances involved, few would be expected to take up this offer. 

Tesco has stated that the decision is based on the need to stay competitive and to meet customer needs. Unions and politicians have reacted with surprise to the announcement and have warned about the impact of such major losses on the local economy. Consultation talks are due to begin between Tesco and employee representatives from the USDAW trade union. 


Sources

  • 21 June 2017: BBC Website
  • 21 June 2017: Financial Times
  • 21 June 2017: The Guardian

Citation

Eurofound (2017), Tesco, Closure in United Kingdom, factsheet number 91327, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/91327.