Tesco to cut 300 head office jobs while raising pay for shop workers

Supermarket aims to make 500m of savings but will freeze prices on more than 1,000 products until 2023

Tesco has said it plans to cut more than 300 head office jobs while raising pay for shop workers for the third time in 13 months, as it issued a warning that profits would be hit by cost inflation.

The UK's biggest retailer is aiming to make 500m of savings this year. The plans include a consultation on 325 job cuts in head office and regional management teams that began in the past fortnight, more automated tills and a reduction in the number of suppliers. It revealed a near-64% dive in half-year profits.