Tesco, Britain's biggest supermarket chain, is planning to shutter two distribution centres leading to 1,000 job cuts.
The move comes a year after Tesco, which employs more than 300,000 people in the UK, closed 43 supermarkets and cut thousands of jobs as its new boss, Dave Lewis, tries to turn around the company's financial performance.
Under the current restructuring, Tesco will close its Hertfordshire and Chesterfield distribution centres, leading to 1,015 job losses, and reduce its distribution centres from 25 to 23 in the UK.
As a result, Texco will severe its warehouse relationships with logistic companies DHL and Wincanton and bring all of those operations in-house.
However, Tesco is expected to create 533 jobs as part of the changes, including at warehouses in Reading, Middlesbrough and also in Daventry, Northamptonshire.
The company said that these changes form part of its wider programme of transformation, which has been taking place over the last two years, to ensure that it is ready for the future in a rapidly changing retail sector.
Matt Davies, Tesco CEO, said, ''As the needs of our customers change, it's vital we transform our business for the future.''
''Our priority throughout this process has been our colleagues and we will continue to do all we can to support them at this time.''