Tesco could scrap workers' DB scheme as it closes stores and suspends dividend

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Beleaguered supermarket Tesco is planning a cost-cutting drive which will see it suspend its dividend, close stores, and appoint a new UK CEO in a bid to reverse its fortunes.

Tesco said it is also consulting of the closure of its defined benefit pension scheme for employees. The scheme is running at a deficit of £2.6bn, according to reports. The retailer wants to save £1bn in capital expenditure in 2015/16, and will not pay a final dividend for 2014/15. By restructuring its central overheads, simplifying store management structures and increasing working-hour flexibility, the group hopes to deliver savings of around £250m per year at a one-off cost of £300m. It will also close 43 unprofitable stores, and will sell its Tesco Broadband and its online v...

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