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Tesco to cut up to 10,000 jobs but plans to expand mortgage arm

Up to 10,000 jobs could be cut at Tesco as part of plans by chief executive Dave Lewis to overhaul how the supermarket is run.

The Telegraph reports that up to 6,000 jobs will go from Tesco’s head offices and 43 store closures. The remainder of the jobs at risk are from plans to streamline management.

Lewis earned the name “Drastic Dave” around 10 years ago when he cut hundreds of jobs at Unilever and scrapped products.

The consultation process began at the end of January, with head office staff offered to apply for voluntary redundancy.

Tesco declined to comment.

It comes as the supermarket’s banking arm prepares to expand its mortgage business by offering loans through brokers for the first time.

In an interview with the Telegraph, Tesco Bank chief executive Benny Higgins said the bank is working on the infrastructure to start lending through brokers, with a view to launch in the first half of next year.

Higgins said: “We’ve been [in the direct market] for over two years now, and we realised that while we’re happy with how it’s going, we are only serving a modest proportion of Tesco customers.

“We’re operating in less than 10pc of the market.

“Whilst it wasn’t our intention at the very outset, it is clear to us that over half of Tesco customers are buying mortgages through brokers and that number is increasing under the new regulatory code.”

Tesco Bank has advanced over £1bn in lending since it started offering mortgages in August 2012.


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Every little helps

  2. They now want to start lending through brokers. I said years ago when the product providers started treating intermediaries disgracefully with their dual pricing policies we should return the favour at some point in the future when conditions had changed. Some of us have long memories.
    Has Tesco ever done anything to support the intermediary channel? Thought not.

    “Whilst it wasn’t our intention at the very outset, it is clear to us that over half of Tesco customers are buying mortgages through brokers and that number is increasing under the new regulatory code.”

    But now of course we’re a useful commodity to be exploited because its become too costly to run their own advisers. They will be barking up the wrong tree if they ever approach me.

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