Supermarket Giant Tesco Cuts Jobs Early Amid Pandemic

  • Tesco begins laying off some of its 45,000 temporary workers
  • Layoffs come earlier than expected with some staff receiving only seven days notice
  • Tesco brought in 45,000 temp workers during the height of the pandemic
  • CEO Dave Lewis says majority of absent staff are returning to work
  • Fewer staff needed as demand for stockpiling decreases
  • Tesco defends £635m dividend payout to shareholders amidst tax break

Supermarket giant Tesco has reportedly begun laying off some of the 45,000 temporary workers it hired during the coronavirus outbreak. The job cuts come earlier than expected with temporary staff in one store only receiving seven days notice. At the height of the pandemic, Tesco brought in around 45,000 temporary workers to deal with the surge in demand from panic-buying shoppers as lockdown began. Now, with Tesco CEO Dave Lewis stating that the majority of its staff who were absent due to Covid-19 related reasons are returning to work and the initial stockpiling demand calming down, fewer staff in both stores and depots will be needed. The news comes after Tesco defended its £635m dividend payout to shareholders despite receiving a £585m tax break amidst the pandemic. Earlier this month, the company’s board approved a final dividend of 6.50p, bringing the full-year dividend to 9.15p. Tesco chairman John Allan said paying its shareholders was the ‘right thing to do’ after they backed the grocer through a five-year accounting scandal.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Tesco’s decision to lay off some temporary workers due to decreased demand during the pandemic. It also mentions the controversy surrounding their dividend payout to shareholders. The information is relevant and not sensationalized or misleading.
Noise Level: 4
Noise Justification: The article provides relevant information about Tesco’s decision to lay off temporary workers and their justification for doing so. However, it could provide more context on the overall impact of this decision on the workforce and the economy, as well as a comparison with other companies’ actions during the pandemic.
Financial Relevance: Yes
Financial Markets Impacted: Tesco’s stock price and investor sentiment
Financial Rating Justification: The article discusses Tesco, a major company in the retail industry, laying off temporary workers due to changes in demand during the pandemic. This can impact its operational costs and potentially affect its financial performance, which is relevant to investors and financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk