Tesco plans to close its call centre in Cardiff, leaving up to 1,100 jobs at risk.
The supermarket chain has customer service sites in Cardiff and Dundee and wants to combine the two in Dundee, where it currently has 900 workers.
It plans to close the Cardiff site in February.
Tesco has said that, while 1,100 jobs will be affected in Cardiff, it plans to create 250 new positions in Dundee and some Cardiff staff will be given the chance to move.
Matt Davies, UK chief executive of Tesco, said: “The retail sector is facing unprecedented challenges and we must ensure we run our business in a sustainable and cost-effective way, while meeting the changing needs of our customers.
“We realise this will have a significant effect on colleagues in the Cardiff area, and our priority now is to continue to do all we can to support them at this time.”
Tesco will now begin consultation with unions.
Nick Ireland, divisional officer at trade union Usdaw, said staff were “understandably shocked” by the news.
He added: “This is clearly devastating news for our members and will have a wider impact on South Wales, as so many jobs are potentially lost to our local economy.”
The news comes in a difficult week for Tesco. Its home delivery services was hit by computer problems on Tuesday that saw up to 10% of orders affected.
Source: SKY News Feed