Sainsbury's to cut 1,500 jobs as part of £1billion 'cost cutting' plan

29 February 2024 , 15:35

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1,5000 jobs will be cut at the supermarket (Image: AFP via Getty Images)

Sainsbury’s has announced plans to cut around 1,500 jobs as part of efforts to reduce costs by £1 billion over the next three years.

The supermarket chain said it would cut roles in its contact centre in Widnes, Cheshire, at its in-store bakeries and a few at local fulfilment centres. At Widnes, a "vast majority" of its staff will see their employment move to a different company which Sainsbury's already works with and all of Sainsbury's Careline services will now be run by this external company.

Sainsbury's said its investment in technology and automation also means it needs fewer local fulfilment centres and a "very small proportion" of staff will be impacted. It also plans to move more of its shops "to a more efficient way of freshly baking products". Sainsbury's said the money it saves will be reinvested into the business to give customers "great value, quality and service."

Those affected by the move have all been told of the plans today and will be helped to find new roles "where possible" within Sainsbury's. However, Sainsbury's noted that the layoffs are still "subject to consultation".

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In a statement, chief executive Simon Roberts said: "As we move into the next phase of our strategy, we are making some difficult, but necessary decisions. I know today's news is unsettling for affected colleagues and we will do everything we can to support them. As a result, the supermarket will be conducting a consultancy process with bakers in these stores.

"Sainsbury's has reassured affected colleagues that it will find alternative roles for them where possible, as it will for any colleague affected by changes proposed today. The proposals we've been talking to teams about today are important to ensure we're better set up to focus on the things that create a real impact for our customers, delivering good food for all of us and building a platform for growth."

The £1billion cost cutting plan was first detailed in the group's "Next Level Sainsbury's Strategy" report published earlier this month. The strategy involved using more automated tills and warehouse robots. The plan also mentioned introducing AI systems to help its fulfilment centres with restocking. Although the plans did not mention job cuts, Sainsbury's boss did not rule it out when he presented the plan this month.

Sainsbury's employs around 152,000 staff across its 600 UK supermarkets and over 800 convenience stores. Despite the layoffs, the supermarket chain said it was still planning to open more stores across the country this year.

Ruby Flanagan