Sainsbury's, the UK supermarket giant, is undergoing a significant restructuring, announcing the elimination of over 3,000 jobs and the closure of all remaining in-store cafes. The company cites a challenging cost environment and a shift in customer preferences as key drivers for these changes.
Sainsbury's has announced plans to cut over 3,000 jobs and close all of its remaining in-store cafes as part of a major restructuring effort. This headcount reduction represents approximately 2% of the company's current workforce of 148,000 employees. The supermarket giant will be streamlining its operations by eliminating around 20% of senior management roles, focusing on fewer, larger positions, and simplifying its head office and management teams.
The company cited declining usage of its cafes, with the majority of shoppers not utilizing them regularly, while in-store food halls and concessions have gained popularity. As a result, Sainsbury's will be closing its remaining 61 Sainsbury's Cafes, subject to consultation. Furthermore, they plan to shut down all remaining patisserie, hot food, and pizza counters in-store, making the most popular items available for purchase in the aisles.The head office job losses will be implemented over the next few months. Simon Roberts, Sainsbury's chief executive, stated that the supermarket is facing a 'particularly challenging cost environment' and these changes are essential to ensure its continued progress. He acknowledged the difficult decisions made, emphasizing the company's commitment to supporting impacted colleagues. These cuts follow Sainsbury's announcement of its 'biggest ever' Christmas trading period and projected profit for the full year between £1.01 billion and £1.06 billion earlier in January. However, the supermarket is also actively seeking to reduce costs by £1 billion annually. Last year, they eliminated around 1,500 roles, primarily from a contact center in Cheshire. The latest job cuts will involve exploring redeployment opportunities for affected employees whenever possible. The company previously warned that tax increases from the October Budget would add an extra £140 million in costs, potentially leading to higher inflation.
SAINSBURY's JOB CUTS CAFE CLOSURE RESTRUCTURING COST REDUCTION
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