Here is a summary of the main steps. Tesco also said further initiatives were under consideration, without elaborating.
CUTS
- Savings of around 250 million pounds a year expected from restructuring of central overheads, simplification of store management structures and increased working hour flexibility at a one-off cost of 300 million pounds.
- Closure of Cheshunt headquarters planned in 2016, with Welwyn Garden City office to become UK and group headquarters.
- Capital expenditure budget to be cut to 1 billion pounds in 2015/16 from 2.1 billion in 2014/15.
- 43 unprofitable stores to be closed; store building programme to be scaled back.
- no final dividend for 2014/15.
DISPOSALS
- To sell Tesco Broadband and loss-making video streaming service Blinkbox to TalkTalk.
- Appoints advisers to explore options for Dunnhumby, the consumer data gathering company behind the Clubcard loyalty programme which is valued at 1-2 billion pounds.
(Reporting by Emma Thomasson; Editing by Mark Potter)