Tesco Ireland creates money-saving package to “Scale” down costs
Reports claim Tesco will make hundreds of Irish employees redundant in 2009 in order to save costs
6 January 2009
Tesco Ireland has reportedly devised a cost-cutting programme, known as “Scale”, to identify areas within its business in which it can save money. Reports in the press in UK and Ireland claim the retailer is considering letting go between 200 and 300 employees in the Republic of Ireland, specifically in its buying departments and strategy and IT divisions, although the company has not made any announcement confirming this claim.
In Ireland, Tesco has already put a number of properties on the market in an ongoing scheme to unlock capital through sale and leaseback deals. One site, at Golden Sands shopping centre in Athlone, is hoped will attract offers of over €60 million, while it is looking for €35 million for its store at the Artane Castle centre in Dublin 5. Four more sites currently are hoped will raise an additional €116 million.
In the meantime, Tesco has opened two new stores in Ireland. The new Tesco Extra in Drogheda was opened by Minister for Justice Dermot Ahern on 5 December 2008, followed on 12 December by a new 30,000 sq ft store in Baileyborough, Co Cavan.