Struggling supermarket giant Tesco has scrapped plans for a new superstore in Driffield as it attempts to fight its way back to growth.
The company, which employs about 300,00 people across the country, has faced falling sales and profit warnings as discount German chains Aldi and Lidl erode its market share.
Tesco has now said it will no longer be building 49 large stores which were in the pipeline.
Chief executive officer Dave Lewis said: "It is with a heavy heart I am today announcing we are unable to proceed with 49 planned new store developments across the UK, including our planned new store in Driffield.
"Our performance as a business has fallen significantly short of where we would want it to be and my absolute imperative has to be to protect the future of our business.
I know that this news will be a real disappointment to many people in the local community and we're extremely grateful for the support we've received for our plans."
A derelict cattle market in the centre of Driffield has been earmarked for development and families had been hopeful Tesco would move in.
The supermarket is also closing its staff pension scheme, making cuts of £250m and reducing overheads by 30 per cent.
It intends to shut 43 existing shops across the country.
A spokesman said it was too soon to say where the axe would fall.
In addition, the company is moving its headquarters in Cheshunt, Hertfordshire to Welwyn Garden City.
It is looking to sell Dunnhumby, which manages data for the Clubcard scheme.
Tesco Broadband and internet video service Blinkbox will be sold to TalkTalk.
Tesco saw a 13 per cent increase in grocery shopping in the six-week Christmas period, compared to 2013.
However, overall sales for the three months to January were down 2.9 per cent. The previous quarter had seen a 5.4 per cent drop.
It hit headlines in October after announcing profits had been overstated by £263m.
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