Sainsbury’s is to cut more than 3,000 jobs
has announced it will cut more than 3,000 jobs and plans to shut its remaining in-store cafes as part of a major overhaul.
The headcount reduction represents about 2% of the company’s current 148,000-strong workforce.
It will see about 20% of senior management roles cut at the supermarket giant as part of plans to focus on fewer, bigger roles and to simplify its head office and management teams.
The retailer also said it had decided to close its remaining 61 Cafes, subject to consultation.
The majority of S shoppers do not use the cafes regularly, whereas in-store food halls and concessions have grown in popularity, it said.
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Sainsbury’s CEO says the chain faces ‘a particularly challenging cost environment’
The head office job losses will take place over the next few months.
CEO Simon Roberts said the chain was facing a “particularly challenging cost environment” as it moves forward with its company strategy.
“As we accelerate into year two and beyond of our strategy, we are facing into a particularly challenging cost environment which means we have had to make tough choices about where we can afford to invest and where we need to do things differently to make our business more efficient and effective,” he said.
“The decisions we are announcing today are essential to ensure we continue to drive forward our momentum but have also meant some difficult choices impacting our dedicated colleagues in a number of parts of our business.
“We’ll be doing everything we can to support anyone impacted by today’s announcements,” Roberts added.
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The cuts come after announced its “biggest ever” trading period and said profit for the full-year would likely be between £1.01billion and £1.06bn earlier in January.
But the supermarket is also trying to cut costs by £1bn-a-year, and last year it cut about 1,500 roles, mostly from a contact centre in Cheshire.
The latest job cuts will see the company “explore redeployment opportunities where this is possible” for people affected. said it will also close its remaining patisserie, hot food and pizza counters in-store and make the most popular items available in the aisles instead.
The company said in late 2024 that tax increases from the October Budget would hit it with an extra £140million in costs, warning that the changes would also lead to higher inflation.
Full list of cafes set to close (subject to consultation)
- Fosse Park, Leicestershire
- Pontypridd, South Wales
- Rustington, West Sussex
- Scarborough, North Yorkshire
- Penzance, Cornwall
- Denton, Greater Manchester
- Wrexham, North Wales
- Longwater, Norwich, Norfolk
- Ely, Cambridgeshire
- Pontllanfraith, South Wales
- Emersons Green, South Gloucestershire
- Nantwich, Cheshire
- Pinhoe Road, Exeter, Devon
- Pepper Hill – Northfleet, Kent
- Marshall Lake, Solihull, West Midlands
- Rhyl, North Wales
- Lincoln, Lincolnshire
- Bridgemead, Swindon, Wiltshire
- Larkfield, Aylesford, Kent
- Whitchurch Bargates, Shropshire
- Sedlescombe Road, Hastings, East Sussex
- Barnstaple, Devon
- Dewsbury, West Yorkshire
- Kings Lynn Hardwick, Norfolk
- Truro, Cornwall
- Warren Heath, Ipswich, Suffolk
- Godalming, Surrey
- Hereford, Herefordshire
- Chichester, West Sussex
- Bognor Regis, West Sussex
- Newport, South Wales
- Talbot Heath, Dorset
- Rugby, Warwickshire
- Cannock, Staffordshire
- Leek, Staffordshire
- Winterstoke Road, Bristol
- Hazel Grove, Stockport, Greater Manchester
- Morecambe, Lancashire
- Darlington, County Durham
- Monks Cross, Huntington, North Yorkshire
- Marsh Mills, Plymouth, Devon
- Springfield, Chelmsford, Essex
- Durham, County Durham
- Bamber Bridge, Lancashire
- Weedon Road, Northampton, East Midlands
- Hempstead Valley, Kent
- Hedge End, Hampshire
- Bury St Edmunds, Suffolk
- Thanet Westwood Cross, Kent
- Stanway, Colchester, Essex
- Castle Point, Essex
- Isle of Wight
- Keighley, West Yorkshire
- Swadlincote, Derbyshire
- Leicester North, East Midlands
- Wakefield Marsh Way, Wakefield, West Yorkshire
- Torquay, Devon
- Waterlooville, Hampshire
- Macclesfield, Cheshire
- Harrogate, North Yorkshire
- Cheadle, Greater Manchester