Thousands of Tesco staff to pocket £134m windfall
Thousands of staff at retail giant Tesco could pocket proceeds from a £134m windfall as part of its employee investor scheme.
The supermarket group said more than 22,000 of its staff are eligible for significant payouts from the pot, which is part of its save-as-you-earn investor scheme.
The pay boost for frontline workers follows Tesco’s announcement last week that it will trim 180 roles from its head office staff.
Employees, mostly in the company’s store and distribution areas, could earn average profits of between £5,000 and £8,000 each, the supermarket said.
Tesco’s share scheme allows workers to buy shares at a discount, with employee investors then able to hold their holdings or sell some or all of their equity to cash in on the windfall.
A windfall is a large amount of money paid out from a sudden or unexpected return on a financial investment.
Windfall dwarfs previous cash pot
It said workers who invested the average figure of £91 a month in Tesco’s three-year scheme will have made a profit of £5,346.
Those who invested an average of £94 a month in the five-year scheme will make a £8,004 profit.
The £134m up for grabs is more than four times the £30m profit shared by staff in 2024’s windfall.
Emma Taylor, Tesco chief people officer, said: “Our people are at the heart of everything we do and when we succeed, we want our colleagues to share in that success.
“Our frontline colleagues deliver for customers every single day, and we are delighted that our save-as-you-earn scheme is providing a really tangible reward for all their hard work, commitment and loyalty.”
The Tesco windfall follows a tumultuous period for UK supermarkets last week, when Sainsbury’s revealed it may slash 300 jobs, and Ocado also announced staff cuts.
Additional reporting by Press Association.