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Sainsbury's to cut 1,500 jobs amid cost cutting push

A cashier scans products at the till inside a Sainsbury's supermarket in Richmond, West London, in London, Britain February 21, 2024. REUTERS/Isabel Infantes
Sainsbury’s is planning to cut 1,500 jobs to free up cash. (REUTERS / Reuters)

Sainsbury’s is set to axe 1,500 jobs as part of efforts to reduce costs by £1bn.

The jobs will go at its store support centre, its contact centre operations in Widnes, Cheshire, in its in-store bakeries and at some local fulfilment centres.

Sainsbury’s said that, where possible, it will find alternative roles for impacted staff, and that the job cuts are subject to consultation.

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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.


It also plans to move more of its shops “to a more efficient way of freshly baking products”.

“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.”

Investment in technology and automation will also mean that the retailer will need fewer local fulfilment centres. A “very small proportion” of staff will be impacted and could be helped to find new roles where possible.

Around 1,500 roles are expected to be lost, although Sainsbury’s said these plans were still subject to consultation. It said the money it saves will be reinvested into the business to give customers “great value, quality and service.”

The changes form part of the group’s new “Next Level Sainsbury’s” strategy, which CEO Simon Roberts detailed earlier this month, which set a new cost savings target of £1bn over three years.

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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.”

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