The British multinational company’s financial screening is to finish shortly, and the results are worrying, so the owners of the company will probably change their business policy. As a result, they can start a multi-stage dismissal in the Central European market, including Hungary.
London sources of the Hungarian daily, Magyar Nemzet, said that in the Czech Republic and Slovakia, the sales area is expected to be reduced while in Hungary, they are going to modify current jobs which might be followed by the dismissal of the employees in waves.
This is because the financial screening of the wholesale supermarket chain produced worse results than the owners of the company previously expected. Magyar Nemzet got its information from the inner circles of the company, and its sources said that the leaders of Tesco already know some parts of the final financial report. There is no final number yet since the screening process did not finish in the case of the Czech Republic and Slovakia which are members of the Tesco Europa group.
However, thanks to the bad results, it is inevitable for the company to execute some
drastic measures until the end of the business year,
Magyar Nemzet‘s inside source said. That is true even though the company produced very good numbers during the pandemic since they sold 12 pc more food than in 2019, mostly on the Internet.
Interestingly, even though Tesco received state support due to the coronavirus epidemic from London, its owners took the same amount of money out of it as a dividend, causing a public outcry in the home country of the company. Tesco decided to leave Poland at the beginning of this summer, and they are thinking about rationalising jobs and stock in Central Europe as well, which many regard as the
first step of a possible exodus.
The Guardian reported that the company implemented measures to save money in the United Kingdom as well. For example, from August 24, Tesco workers will clean small Tesco Expresses in England instead of third-party companies.
The plan to modify the current operation mechanism in Hungary is not old; Matt Simister, leader of Tesco Europa, talked about it before highlighting that they reduced the sales area and narrowed their product range. In Hungary, Tesco currently employs 15 thousand people, but
it might happen that 8-10 pc of the jobs will not exist
by the end of the second half of the business year.