In another sign that Britain’s biggest grocer still has a long way to go with its recovery plan, the supermarket chain said that it would be cutting 1,200 head office jobs in Welwyn Garden City and Hatfield (The Times). The eliminated roles include marketing, finance, buying and property functions and will affect one in four workers at the supermarket’s head office in Welwyn Garden City (The Financial Times £). A quarter of staff at offices in Welwyn Garden City and Hatfield face the axe, along with some jobs at the Birmingham head office of Tesco’s One Stop chain and the retailer’s technology and retail support centre in Bangalore, India (The Guardian)

The move has taken industry experts by surprise as it follows Tesco’s recent best quarterly sales performance and a wage increase announcement which it called its “biggest ever investment” in staff (The Telegraph). Tesco is in the midst of a turnaround plan under chief executive Dave Lewis and last week said 1,100 jobs would be axed after confirming plans to shut its call centre in Cardiff (The Daily Mail)

Investors in the Co-op Bank’s bonds are facing the second big reduction in the value of their holdings within four years after the struggling lender revealed the terms of a £700m bailout. Retail bondholders will take at least a 55% cut in their investments under the terms of a third recapitalisation of Co-op Bank since the discovery in 2013 of a £1.5bn black hole in its finances. (The Times £)

A major sticking point in the negotiations had been tensions over the division of the £10bn pension scheme shared by the Co-op Group and Bank, and the ongoing relationship agreement between them. It was confirmed by the bank that it had agreed to separate itself from the scheme, leaving the lender solely responsible for its employees’ retirement savings. (Sky News)

Campaigners have attacked the Co-op Bank for abandoning its roots over a rescue plan which will hand US vulture funds a 99 per cent stake. The lender has been battling to plug a black hole in its finances, and abandoned a sale this week after no compelling offers were received. (The Daily Mail)

Online supermarket Ocado has launched the UK’s first self-driving grocery delivery trial. The firm has started sending out orders using its CargoPod, an autonomous truck designed by Oxford tech firm Oxbotica. (The Daily Mail)