Report: Tesco considers layoffs, closure of some Hungarian units

Retail

Tesco is anticipating the layoff of 500-600 employees as a result of new legislation that has placed a heavy burden on retailers, primarily the supervisory fee that grew 60-fold, Hungarian daily Magyar Nemzet reported today.

Citing unnamed sources, the daily reports that 10-12 Tesco stores in rural Hungary may face closure, however these are mostly smaller units near larger Tesco stores, which are expected to absorb heavier weekday traffic due to forced Sunday closures.

Hungarian online daily Origo suggests, that with the closure of these units, Tesco will decrease its revenues, thereby reducing the required supervisory fee.

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