Sainsbury to cut 2,000 jobs to reduce costs

The retailer announced it was restructuring its human resources (HR) departments, resulting in 1,400 in-store jobs axed. A further 600 back office HR jobs are being cut across the company, including roles at Argos and Sainsbury’s Bank.

Sainsbury said it was looking to save £500M, amid fierce competition from discount retailers and rising food costs.

‘Changing at a rapid pace’

A Sainsbury spokesperson said: “The UK grocery market is changing at a rapid pace and it’s crucial that we transform the way we operate to meet future challenges and continue to provide customers with best in class service. 

“This has been a difficult decision and we appreciate that this will be a tough time for those colleagues affected by the changes. We will support them in any way we can.”

Sainsbury employs about 195,000 people across the UK.

In its first-quarter trading report for the 16 weeks to July 1, the supermarket chain reported a 2.3% rise in like-for-like sales (excluding fuel), while grocery sales grew by 3%.

Plans to cut 800 jobs

The retailer announced plans to cut 800 jobs in April as part of its drive to save £500M over the next three years.

Sainsbury’s announcement followed a string of job cuts made by supermarkets over the past year.

Tesco, the UK’s largest supermarket, revealed in June that it was to axe 1,200 jobs at its head office in Hertfordshire.  In March, the retailer cut 1,700 deputy manager roles.

In August, Asda reportedly began consultation with 3,257 staff in 18 underperforming stores that had been singled out as overstaffed, relative to their current sales performance.

Meanwhile, Lidl is to create 500 jobs at a new distribution centre in Peterborough, as it continues to invest £1.45bn in its UK operations.