TSCDY Tesco PLC (PK)

LONDON--Tesco PLC (TSCO.LN) said Monday it is closing two distribution centers in the U.K.

The company said it will cut 1,000 jobs from the closing of the facilities but will create 500 jobs elsewhere, resulting in a net loss of 500 positions. It said "new roles will be created within other sites across the Tesco distribution network."

The changes to the distribution network are part of wider changes at the food retailer over the last two years, the company said.

Tesco said it will close distribution centers in Welham Green and Chesterfield. It added it will also bring all of its warehouse operations now carried out by logistics providers DHL Express and Wincanton in-house, it added.

The management structure will be simplified across all distribution centers, Tesco said.

Shares closed up about 0.7% at 200.95 pence.

-Write to Olga Cotaga at olga.cotaga@wsj.com, Twitter @OlgaCotaga

(END) Dow Jones Newswires

January 09, 2017 13:03 ET (18:03 GMT)

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