Tesco could cut 39,000 jobs over the next three years to reverse slump in profits
Tesco currently employs more than 300,000 people in the UKReuters

Tesco could cut jobs to reduce its costs and improve profits. About 39,000 store staff could be let go over the next three years as part of a programme called "Project Pace", a document on verylittlehelps.com, a Tesco staff forum, revealed.

The British retailer confirmed the document. However, it added that it was just a potential plan and was part of the various scenarios modelled by Tesco and it currently had no plans to trim its staff.

The document also read that about 39,000 fewer store staff would help Tesco save £500m (€634.81m, $693.9m) a year in terms of wages. This redundancy would translate to one in six employees either leaving their job or having their working hours reduced, according to the document, which also said the biggest cuts would be at its large format stores across the north of England and Scotland.

In response, Tesco said: "This is not a new programme of job losses, and we are not announcing one. We do not comment on rumours other than to say that we are transforming Tesco into an organisation that meets the needs of customers in a rapidly changing retail sector, and as such continue to plan accordingly."

It is understood that about 45,000 Tesco employees quit on their own every year. The supermarket chain could hence achieve its three year target of 39,000 by just choosing not to replace the departing employees, according to The Guardian.

Tesco, which posted a £6.4bn pre-tax loss in 2015, currently employs more than 300,000 people in the UK. Dave Lewis, the latest CEO at the supermarket chain, cut thousands of jobs in 2015 in an effort to improve the company's financial performance.

The company has witnessed reduced sales in recent years because of the change in the shopping habits of British households and due to increased competition from German discount retailers such as Aldi and Lidl.

While other Big 4 supermarkets such as Sainsbury's and Morrisons too cut thousands of jobs in 2015 because of reducing sales, both Aldi and Lidl have been increasing their workforce by thousands. Aldi just earlier in February said it would hire 5,000 new staff in the UK as it plans to open 80 extra stores throughout 2016.