Tesco has cut jobs at the Californian headquarters of its struggling Fresh & Easy chain in the U.S, but is still continuing with business as usual, according to Reuters.
“In April we said we are taking a more cautious approach to expanding Fresh & Easy, focusing on getting existing stores to profitability,” Tesco said in a statement. “Our central cost base should reflect that more cautious approach. With great regret, this means that we have to make redundancies at Fresh & Easy headquarters in California. This is not with a view to a sale or closure of the business. We remain committed to reach profitability and these changes are about helping to achieve that.”
A spokesman for Tesco said about 50 jobs would be lost. Fresh & Easy currently employs just over 5,000 people.
In April Tesco Chief Executive Philip Clarke said he did not expect the chain to break even until its 2013-14 financial year, against a previous target of 2012-13, Reuters reported.
Last month Clarke noted that while he was committed to Fresh & Easy’s future, he would pull the plug if the chain continued to lose money. He rejected renewed calls for an independent review of its strategy.
For more on Fresh & Easy read CSD’s September 2011 cover story: http://www.cstoredecisions.com/2011/09/27/will-tesco-turn-it-around/