Hundreds of Tesco employees face job losses after the multinational grocery retailer said it was downsizing to remain competitive. It isn’t the only UK supermarket giant to make such changes in recent times, though. ASDA announced it was cutting jobs in November last year to improve operational efficiency.
Below, we examine exactly what changes Tesco is making and the reasons behind its decision. We will then discuss HR’s role when an employer wants to cut jobs via redundancy, as well as the best practices for upholding morale and reducing legal risks.
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Tesco Cutting Jobs Amid Growing Supermarket Competition
On 29 January 2025, Tesco announced there would be around 400 job cuts, affecting managers in its head office and employees across its Mobile stores and bakeries. This news comes just days after Morrisons and Sainsbury’s announced job losses of their own.
READ: Financial Well-Being: A Key Focus for Employers in 2025
Tesco attributed this decision to an increasingly competitive UK grocery industry, stating that it was looking for “more efficient ways of working.” The supermarket’s UK Chief Executive, Matthew Barnes, said on the matter, “These are difficult decisions affecting our colleagues, but we believe they are necessary to enable us to invest in what matters most to our customers.”
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What is the Role of HR in Laying Off an Employee?
Amid recent supermarket job losses, employers considering similar action must ensure they cut jobs via the proper redundancy process. HR plays a key role here, helping employers mitigate legal risks and keep the process smooth.
HR’s Role in the Process
An HR department tasked with redundancy-based job cuts would first be required to create a comprehensive plan that outlines the rationale for redundancies. This is crucial, as there are specific legally compliant reasons redundancy can occur, including:
- Workplace closure
- Business takeover
- Reduced need for work
- Reorganisation or restructuring
- Relocation of operations
HR’s plan should also detail how many roles will be affected, the selection criteria, and the steps it has taken to avoid redundancies altogether. Such steps could include pay reductions, retraining, or decreasing the working week, while the selection criteria may comprise experience level, performance history and service length.
Importantly, the criteria used to select those losing their jobs must not be discriminatory or based on protected characteristics like age, gender, or disability. Once complete, this plan should be shared with all staff, relevant trade unions, and employee representatives to ensure transparency and fairness.
Consulting Employees Affected by Job Losses
After creating the plan, HR would then look to consult with the employees impacted by the job losses. If an employer proposes 20 or more job cuts via redundancy in a 90-day period, a collective consultation would be required. However, if the number is less than 20, individual consultations would be appropriate.
During consultations, HR should discuss the reasons for redundancies, explore alternatives, and consider any employee suggestions. Where suitable alternative employment is available, this should be offered. If an employee unreasonably refuses this offer, though, they may forfeit their entitlement to redundancy pay.
Once it has been decided who will be losing their jobs, HR must provide the correct notice before calculating redundancy pay for eligible employees. It would also need to establish a clear appeals process for anyone with a grievance about the decision. If any grievances are raised, the redundancy process should be paused while an independent party undertakes an objective investigation.
To help ensure legal compliance throughout, HR departments should consider training those involved. This could include training managers to handle discussions with affected employees empathetically and professionally.
Best Practices for Managing Redundancy and Job Losses
There are a number of best practices employers should follow when considering job losses. In addition to minimising legal risks, these help maintain trust and uphold morale throughout the workforce, which is key to talent retention and productivity.
When redundancies are initially proposed, employers should aim to be as transparent as possible. They should clearly explain to all staff the reasons behind the proposal, the process that will be followed and the criteria for selection. By maintaining transparency, employers can manage expectations and reduce uncertainty among employees.
Understandably, once those impacted discover their fate, they will likely experience some form of distress. As such, when job losses are announced, employers must recognise the emotional impact this will have and provide adequate support to help those affected cope. Some Employee Assistance Programmes (EAPs) offer continued support, even after an individual’s employment has ended, which can be invaluable during their transition.
READ: Working Parents Unable to Focus Due to Work Stress: Here’s How Employers Can Support
Building on the post-employment support touched on above, employers can also offer assistance to departing employees in finding new employment. Among other things, this could include providing references, offering outplacement services, or facilitating workshops on essential skills. By offering such help, employers can help protect their reputation and show their workforce that they care. This not only boosts internal morale but also reflects well on them externally, potentially improving their ability to attract new talent.
Finally, while the remaining staff may have escaped job losses, their mental well-being could still be affected. These employees may have concerns about their job security, and it’s up to their employer to reassure them and outline the company’s future direction. By providing clarity and support, employers can help maintain engagement and productivity.
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