Sainsbury's, facing a challenging cost environment, is cutting over 3,000 jobs and shutting down its remaining in-store cafes as part of a major restructuring plan. The supermarket chain is also simplifying its head office and management structures and will consolidate its food offerings.
Sainsbury's has announced plans to cut over 3,000 jobs and close its remaining in-store cafes as part of a major restructuring. The job losses represent about 2 percent of the company's workforce of 148,000. The supermarket chain will reduce its senior management roles by 20 percent, aiming to consolidate into fewer, larger roles and simplify its head office and management structures. Additionally, Sainsbury's will shut down its 61 remaining Sainsbury's Cafes, subject to consultation.
The retailer cited declining cafe usage among its shoppers, while in-store food halls and concessions have seen increased popularity.Sainsbury's will also discontinue its in-store patisserie, hot food, and pizza counters, instead offering the most popular items through its aisles. The head office job cuts will be implemented over the next few months. Simon Roberts, Sainsbury's chief executive, acknowledged the 'particularly challenging cost environment' the supermarket is facing while pursuing its company strategy. He stated: '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 emphasized that the decisions made are crucial to maintain momentum but acknowledged the difficult choices impacting dedicated colleagues.The company reassured that it will offer support to those affected by the announced changes. These cuts follow Sainsbury's announcement of its 'biggest ever' Christmas trading period and a projected full-year profit between £1.01 billion and £1.06 billion earlier in January. However, the supermarket is also striving to reduce costs by £1 billion annually. Last year, it eliminated approximately 1,500 roles, primarily from a contact center in Cheshire. The latest job cuts will involve exploring redeployment opportunities for affected employees. Sainsbury's previously warned that tax increases from the October Budget would add £140 million in costs by late 2024, predicting that these changes would also contribute to higher inflation
Job Cuts Sainsbury's Restructuring In-Store Cafes Cost Reduction Supermarket Industry
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