Tesco to post hike in profit as thousands of jobs axed

0 Analysts expect the chain will announce a 22% surge in full-year pre-tax profits to £1.6 billion

Tesco is tipped to announce bumper profits this week, while the supermarket giant’s staff brace for thousands of job cuts.

City analysts forecast the retailer will post a 22 per cent surge in bottom-line, full-year pre-tax profits to £1.6 billion when it reports figures on Wednesday, with sales tipped to jump 12 per cent to £64.5bn.

Fourth-quarter like-for-like sales are expected to rise by up to 2.2 per cent in the UK, the 13th consecutive period of positive figures.

However, January saw Tesco announce that up to 9,000 jobs are at risk across its head office and stores as part of a cost-cutting drive.

Sweeping changes across the business will include a reduction in deli counters, with 90 stores set to lose the service altogether.

In addition to those directly employed by Tesco, the changes will hit third-party caterers as the company replaces the hot food service in its staff rooms with self-service kitchens.