Coles to axe 438 jobs at Melbourne support centre

Supermarket chain Coles has confirmed it will axe almost 440 jobs from its Melbourne support centre.

The company said the cuts were part of a restructure designed to make the centre at Tooronga, in Melbourne's east, more efficient.

Reports yesterday suggested the company was preparing for mass cuts at its Melbourne headquarters.

In a statement Coles said the changes would lead to the loss of 378 permanent positions and 60 contractor jobs.

"The team members affected by this decision have made a significant contribution to Coles and we sincerely thank them for their hard work," Coles managing director John Durkan said in a statement.

The supermarket said the savings from the restructure would lead to increased investment in its stores.

"To be a world class retailer, Coles needs to invest further in new stores, in renewing existing stores and in better service and value for our customers," Mr Durkan said.

"Coles is absolutely focused on better supporting our stores and more than 99,000 team members so they can deliver what our customers want."

There will be 160 redeployment opportunities for affected staff.

Coles said none of the jobs would be going offshore.

*Job losses an 'enormous concern'*

The company's Director of Corporate Affairs Alastair Jordan said the decision was not taken lightly.

"It's a very tough decision that's been made, and one that hasn't been made without all reasonable alternatives being discussed and considered," Mr Jordan said.

"I'd like to place on the record on behalf of Coles our sincere thanks and our gratitude for the hard work, and for the contribution and dedication of each of those team members affected.

"(It will) enable us to invest more in our store network right around Australia, our customer service and the value that we provide to our customers.

"It is a very competitive environment. These decisions are not decisions that we've taken lightly in any way."

A statement from the Australian Services Union said the magnitude of the losses was deeply worrying.

"We are in the midst of a jobs crisis in Victoria and any job losses, particularly in the order of hundreds in one of Australia's largest companies, is of enormous concern," branch secretary Ingrid Stitt said.

She said the union would look out for affected workers.

"We will keep a close eye as this situation develops further and will ensure that any affected members are not only provided with all of their entitlements, but also a reasonable plan and provisions for transition," she said.