EMCC European Monitoring Centre on Change

Tesco

Company/Organisation:
Tesco

Geographic Location

Country: Poland
Location of affected unit(s): Mielec and Częstochowa

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.11 - Retail sale in non-specialised stores with food, beverages or tobacco predominating

Employment Effects

Announcement Date: 26-06-2020
Planned Job Reductions min: 200
Type of Restructuring: Closure
Employment Effect Start: 17-07-2020
Foreseen End Date: 30-09-2020

Additional Information

The supermarket chain Tesco announced its plans to close two hypermarkets in Mielec and Częstochowa, Poland, which will cause 200 redundancies. The jobs will be cut throughout a collective dismissal programme. The conditions of the redundancy programme will be negotiated with the local trade unions; dismissed workers will receive severance pay. The programme will be carried out between 17 July and 30 September 2020.

Moreover, on 18 June 2020, Tesco informed about the sale of its business in Poland. The buyer is Salling Group, owner of the retail grocery chain Netto. The transaction comprises 301 shops, distribution centres and headquarter. The company will try to sell the remaining properties not covered by the transaction, including 19 operating stores. In addition, in the last 18 months, Tesco has sold or agreed to sell over 20 stores. Tesco revealed that the decision was taken due to economic reasons.

Operating in Poland since 1992, the company has 320 stores and employs over 10,000 people across the country.

In 2019 and 2020, the company already announced six other restructuring programmes: January (1,300 jobs cut), June (1,480 jobs cut), August (2,154 jobs cut), September (2,117 jobs cut) November (224 jobs cut) and February 2020 (380 jobs cut).

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