Sainsbury's announces significant job cuts and store restructuring to boost performance amidst economic challenges.
Sainsbury's , a prominent British supermarket, is poised to eliminate over 3,000 jobs as part of a comprehensive restructuring of its stores. This reduction in workforce, amounting to 2% of its 148,000 employees, is intended to enhance the performance of both Sainsbury's and Argos , despite the company reporting its most successful trading period ever. The company anticipates full-year profits to range between £1.01 billion and £1.06 billion.
A significant portion of the job cuts, approximately 20%, will affect senior management roles. Chief executive Simon Roberts emphasized the company's commitment to supporting impacted employees by exploring redeployment opportunities. Earlier this month, Sainsbury's confirmed a 5% pay increase for workers to mitigate the effects of rising inflation.In addition to job cuts, Sainsbury's is also closing its remaining 61 Sainsbury's Cafes, subject to consultation. This decision, attributed to low customer usage of the cafes, will see the elimination of hot food, pizza, and patisserie counters from stores, with popular items being made available in the food aisles instead. Mr. Roberts explained that the company is facing a challenging cost environment and had to make difficult choices to ensure its continued growth and efficiency. He acknowledged the impact these decisions have on dedicated colleagues in various parts of the business.The job cuts come despite Sainsbury's projected significant profits. The supermarket aims to reduce costs by around £1 billion annually. Last year, the company reduced approximately 1,500 roles, primarily from a contact center in Cheshire. Sainsbury's previously warned that tax increases announced in the October budget by Chancellor Rachel Reeves would lead to an additional £140 million in costs and contribute to inflation.Responding to Sainsbury's announcement, a Downing Street spokesperson highlighted the need for difficult decisions to restore economic stability and public finances. Shadow Business Secretary Andrew Griffith called on the Labor party to reverse their 'jobs tax'
Sainsbury's Job Cuts Restructuring Supermarket Argos Cost Reduction Inflation Economic Challenges
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