Tesco has today (27 July) confirmed its US Fresh & Easy chain has cut jobs at its headquarters in Los Angeles.
A spokesperson for Tesco said: “In April, we said we are taking a more cautious approach to expanding Fresh & Easy, focusing on getting existing stores to profitability.”
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In April, Tesco said it intends to bring the US chain back to profitability before pushing on with expansion plans.
“Our central cost base should reflect that more cautious approach. With great regret, this means that we have to make redundancies at Fresh & Easy headquarters in California.
Earlier this month, the company said it was committed to Fresh & Easy despire concerns the chain is failing to deliver profits.
During this time, CEO Philip Clarke said: “Fresh & Easy is improving as a business and I can assure you that it is receiving close attention from the executive team. We believe there is great value in the business and, if we get it right, an excellent stream of growth in future years.”
The retailer today emphasised its commitment to Fresh & Easy. The spokesperson added: “This is not with a view to a sale or closure of the business. We remain committed to reach profitability and these changes are about helping to achieve that.”
