Sainsbury's has announced plans to cut more than 3,000 jobs as part of its strategy to simplify operations and address a challenging financial environment.
The supermarket chain will close its remaining 61 in-store cafés and shut down patisserie, hot food, and pizza counters. The company said that it would instead make these food items available directly in store aisles.
The restructuring includes a 20 per cent reduction in senior management roles, with changes aimed at creating faster decision-making and reducing costs. The supermarket currently employs 148,000 people and is in the midst of a three-year strategy to save £1 billion in operating costs.
Chief executive Simon Roberts said the decision was driven by a "particularly challenging cost environment". He acknowledged the difficult nature of the announcement, stating: "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."
The job cuts come despite Sainsbury's recently reporting strong Christmas sales and expecting annual profits to surpass £1 billion. The company will face an additional £140 million annual cost from April due to increased employer National Insurance contributions.
Unite union's national officer for food, Paul Travers, criticised the move, calling it "a blatant example of profiteering on the backs of workers". He added that the union would "be fighting for our members' jobs during any consultation process".
Retail expert Catherine Shuttleworth suggested these cuts might be "the first of many" for the retail industry, noting that retailers are "wrestling with the increased costs of labour as a result of the Budget".
Sainsbury's has said it will explore redeployment opportunities and provide support packages for affected employees that exceed statutory requirements.
The restructuring is part of the company's "Next Level" strategy, which aims to improve efficiency and create more space for fresh food ranges in stores. The company reported seven consecutive quarters of volume growth and record customer satisfaction scores at Christmas.
The announcement follows Sainsbury's previous job cuts in February 2024, when the company announced the reduction of 1,500 roles.
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