Tesco has announced plans to cut 180 jobs while creating new positions across the business as part of a restructuring programme. If your role is affected, understanding your employment rights under England and Wales law will help you navigate the consultation and departure process.
What has been announced
- On 25 February 2026, Tesco announced a major restructuring plan across the business.
- The restructuring is set to cut 180 jobs.
- Tesco has stated it will create new roles alongside the job cuts.
- Specific sites affected by the job cuts have not been stated in the announcement.
About the company
Tesco is the United Kingdom's largest supermarket chain.
The business operates across the retail sector nationwide.
What happens next
Because Tesco is proposing 100 or more redundancies at an establishment, employers under England and Wales law must conduct collective consultation for at least 45 days before any dismissals take effect.
The consultation must take place with trade union representatives or elected employee representatives, alongside individual consultations with affected staff.
During consultation, Tesco must explore ways to avoid dismissals, reduce the number of affected staff, and mitigate the consequences of redundancies.
Because new roles are being created, eligible employees should be given fair access to apply for or be matched into suitable alternative employment.
Employees with at least two years of continuous service who are made redundant are entitled to statutory redundancy pay, calculated using age, weekly pay capped at the statutory limit, and length of service.
Voluntary or compulsory redundancy
Employers often invite applications for voluntary redundancy before enforcing compulsory job losses.
Voluntary redundancy terms may offer an enhanced financial package above statutory redundancy pay to encourage departures.
You are not obliged to apply for voluntary redundancy, and Tesco is not required to accept every application if it needs to retain specific skills.
If compulsory redundancies proceed, Tesco must use fair, transparent, and non-discriminatory selection criteria to select roles for redundancy.
Your settlement agreement
Tesco may offer affected employees a settlement agreement to resolve their departure.
A settlement agreement is a legally binding contract where you waive your rights to bring employment tribunal claims in exchange for a compensation payment or enhanced redundancy package.
To be legally binding, you must receive independent advice from a qualified legal adviser, such as a solicitor, who will explain the terms and their effect on your ability to pursue employment claims.
Employers typically cover or contribute toward the legal fees required to obtain this independent advice.
Common questions
How many jobs are being cut at Tesco?
Tesco has announced that 180 jobs are set to be cut as part of the restructuring.
What is the consultation period for these redundancies?
Under England and Wales law, proposing 100 or more redundancies triggers a minimum 45-day collective consultation period before any notices of redundancy take effect.
Am I entitled to redundancy pay?
You are entitled to statutory redundancy pay if you have worked continuously for Tesco for at least two years. The exact amount depends on your age, length of service, and weekly pay up to the statutory cap. Tesco may also offer enhanced redundancy terms.
Can I be moved into one of the newly created roles?
Employers must consider suitable alternative employment for affected staff. If a newly created role matches your skills and experience on comparable terms, you should have the opportunity to be considered for it.
How Deen & Co helps
Deen & Co Solicitors provides independent legal advice to employees facing redundancy or reviewing settlement agreements. Our solicitors ensure that your severance package is fair, explain your legal options clearly, and handle the formal sign-off required for settlement agreements.
Read more about settlement agreement advice or work out your statutory redundancy pay.
Sources
- UK’s biggest supermarket to axe jobs and create new roles in major restructuring - Yahoo Finance UK — Yahoo Finance UK (25 February 2026)
- UK’s biggest supermarket Tesco to axe 180 jobs and create new roles in major restructuring - The Independent — The Independent (25 February 2026)
- Tesco plans head office shake-up with 180 jobs cut, but new roles created - The Irish News — The Irish News (25 February 2026)
Last updated 9 September 2026. This page summarises publicly reported information and is general guidance, not legal advice on your own situation.
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