TESCO is set to close its in-store bakery at its Purley Cross branch, in a move thought to affect around 13 staff.
Bread and other baked goods will instead be made at a centralised kitchen in Surrey, as part of the store's expanding Euphorium project.
Current staff are being offered new roles in the store or an option to relocate to its new bakery in Weybridge.
But the Advertiser understands many staff are angry about the move, fearing they will have to accept contracts with fewer hours and benefits.
A Tesco spokesman did not go into detail on the terms being offered to staff when asked by the Advertiser, but said: "There are lots of opportunities both in store and at the new bakery centre in Weybridge, and we're talking to affected colleagues to help them into roles in the new bakery team."
The changes, being introduced at around 100 stores in the south east, will see artisan bakery Euphorium opening new counters, as has already happened in many stores.
Tesco has said up to 450 jobs will be created at the new site in Weybridge, and 1,000 jobs in total including at Euphorium sites.
The company said it is "excited" by the move, adding: "We already offer Euphorium bakery products in several of our stores in and around London and feedback from customers has been really positive.
"As part of our programme of creating compelling and enjoyable retail destinations for our customers, we are pleased to be introducing the Euphorium range of artisan breads and cakes to some of our stores in the south and London areas.
"We are working with our existing colleagues to support them in applying for the new roles in store and at the bakery centre in Weybridge."
But one customer said she was more concerned about the staff, adding: "It doesn't benefit the customer in any way and it's a very poor way to treat their staff; some of them have worked at Tesco for 15 years."
It is thought the move will take place towards the end of August.
