Budapest, January 12 (MTI) – The Hungarian unit of British supermarket chain Tesco will lay off more than 500 employees in Hungary from Feb. 4, though some will be offered jobs in other stores, the company told MTI on Monday, confirming a report in Magyar Nemzet daily that the company is cutting 564 jobs.
Chief executive of Tesco Global Aruhazak Nigel Jones said the company would provide the workers it is laying off with higher severance pay than required by the law.
Tesco has decided to close 13 of its stores in Hungary to ensure profitability, Jones said.
Recently approved legislation bans retailers that are unprofitable in two consecutive years from doing business.
Jones said most of the stores to be closed are outside of the capital, but one is a Tesco Express in Budapest’s 8th district.