Tesco is cutting up to 1,100 jobs in Cardiff amid what it called ‘unprecedented challenges’ for the retail sector.
The UK’s largest retailer said on Wednesday that it would create 250 jobs in Dundee as it attempts to consolidate all of its call centre operations in one location.
The USDAW union, said Cardiff staff were told on Wednesday morning that the Cardiff centre would close in February next year.
Tesco said it took the decision because it needed to ensure its business remains “sustainable and cost effective” in the face of “unprecedented challenges” for the retail sector.
Tesco's UK boss Matt Davies said: “To help us achieve this, we've taken the difficult decision to close our customer service operations in Cardiff.
”We realise this will have a significant effect on colleagues in the Cardiff area, and our priority now is to continue to do all we can to support them at this time.“
Nick Ireland, USDAW divisional officer said: ”Tesco's Cardiff call centre staff are understandably shocked by the announcement of the company's planned closure, they are being briefed by managers this afternoon.
“USDAW reps and officials are providing support to our members at this difficult time.
”This is clearly devastating news for our members and will have a wider impact on south Wales, as so many jobs are potentially lost to our local economy.“
He said the union would consult with Tesco to assess the business case for the proposed closure.
Last week, Tesco reported its strongest quarterly UK sales performance in seven years, despite the increasingly inflationary trading environment.
The supermarket, which in January agreed to buy wholesaler Booker for £3.7bn, said UK like-for-like sales rose 2.3 per cent in the 13 weeks to 27 May. That was well above analyst's estimates and meant a sixth straight quarter of growth.
Retailers are battling rising inflation, caused in large part by the fall in the pound since last year’s vote to leave the European Union.
Official data last week showed real UK wages are shrinking and retail sales fell more sharply than expected in May.
