The supermarket made the announcement as it revealed like-for-like sales for the weeks leading into January fell by 2.9%.
Today the supermarket giant has entered a fierce price war with rivals cutting prices.
It is part of a raft of new measures as new boss Dave Lewis battles to turn around the group's fortunes.
Tesco also said it was to close its final salary pension scheme and shut its main headquarters in Cheshunt, Hertfordshire, in 2016, moving to Welwyn Garden City. A restructuring of central overheads is expected to save £250 million a year.
In addition to the shutting of shops, the group announced a "significant revision" to its store-building programme.
It is also selling Tesco Broadband and UK download business Blinkbox to TalkTalk and exploring options for the disposal of its dunhumby data business, as well as cancelling a final-year dividend for 2014/15.
Chief executive Dave Lewis said: "We have some very difficult changes to make. I am very conscious that the consequences of these changes are significant for all stakeholders in our business but we are facing the reality of the situation."
"Our recent performance gives us confidence that when we pull together and put the customer first we can deliver the right results."
The Business News Editor of the Evening Standard, Alex Lawson, has the latest on the this story.