Sainsbury’s plans to cut 1,500 jobs as part of its cost-cutting drive

Sainsbury’s plans to cut 1,500 jobs as part of its cost-cutting drive

A cashier scans products at the checkout in a Sainsbury's supermarket in Richmond, West London, in London, Britain, February 21, 2024. REUTERS/Isabel Infantes

Sainsbury’s plans to cut 1,500 jobs to free up cash. (Reuters)

Sainsbury’s will cut 1,500 jobs as part of its £1 billion cost-cutting measures.

The jobs will be created in the store support centres, the contact centre operations in Widnes (Cheshire), the in-store bakeries and some local fulfilment centres.

Sainsbury’s said it would seek alternative employment opportunities for affected staff where possible and that consultations would be held regarding the redundancies.

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In Widnes, the “overwhelming majority” of staff will move to another company that Sainsbury’s already works with, and all Sainsbury’s Careline services will now be operated by this external company.

There are also plans to switch to a more efficient supply of fresh baked goods in other branches.

“The supermarket will therefore carry out a consultation process with the bakers of these branches.

“Sainsbury’s has assured affected colleagues that alternative work will be found for them where possible, as will be the case for all other colleagues affected by the changes proposed today.”

Investments in technology and automation will also mean the retailer will need fewer local fulfilment centres. A “very small proportion” of staff will be affected and could be supported in finding new roles if possible.

Around 1,500 jobs are expected to be cut, although Sainsbury’s said its plans were still subject to consultation. The money saved will be reinvested in the business to provide customers with “great value, quality and service”, it said.

The changes are part of the group’s new “Next Level Sainsbury’s” strategy, detailed by CEO Simon Roberts earlier this month, which includes a new cost-saving target of £1 billion over three years.

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Roberts said: “As we enter the next phase of our strategy, we are making some difficult but necessary decisions.”

“I know today’s news is distressing for the colleagues affected and we will do everything we can to support them.”

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