Tesco staff set to lose out on shares scheme

The recent slump in Tesco's performance is set to hurt more than 50,000 workers who signed up to a share-saving scheme. They are expected to pocket far less than previously hoped after a dire Christmas trading performance and profits warning saw nearly £5 billion wiped off the supermarket giant's share price in a single day.

If shares had stayed at the levels seen before last week's slump, the 54,000 staff would have been set to make gains of up to £762. Tesco has now told staff that have already opted to take their payment in shares that they can change their minds and accept a £275 cash bonus also available under the scheme.

Under the scheme, the UK's biggest private-sector employer allows staff to save up to £50 a month for three or five years and then buy shares at a pre-agreed price.