Sainsbury's plans to cut 1,500 jobs in bid to slash costs: 'Difficult, but necessary'
Sainsbury's has announced plans to cut 1,500 jobs
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Sainsbury's has announced plans to cut 1,500 roles to slash its costs.
The retailer said it would reduce its workforce in its contact centre in Widnes, Cheshire, at its in-store bakeries and some jobs at local fulfilment centres.
The supermarket giant announced the move as part of plans which it hopes will cut costs by around £1billion a year.
“As we move into the next phase of our strategy, we are making some difficult, but necessary decisions,” chief executive Simon Roberts said.
Sainsbury's is aiming to cut costs by £1billion a year
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“I know today’s news is unsettling for affected colleagues and we will do everything we can to support them.”
The supermarket said the money it saves will be reinvested into the business to provide customers with “great value, quality and service".
Sainsbury's said the "vast majority" of its Widnes staff will see their employment moved to a different firm which the retailer already works with.
All of their Careline services will now be run by this external company.
The supermarket chain also intends to move more of its stores to a "more efficient way of freshly baking products".
Mr Roberts added: “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.”
Due to investment in technology and automation, the retailer will need fewer local fulfilment centres, impacting a "very small" proportion of staff.
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Sainsbury's intends to move more of its stores to a "more efficient way of freshly baking products"
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Sainsbury's said these employees could be helped to find new roles where possible.
Mr Roberts said: “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.”
Sainsbury's unveiled a strategy update that will see it boost food space across its almost 600 supermarkets earlier this month.
The retailer said it plans to cut its general merchandise and clothing offering across many shops, with between 20 per cent to 30 per cent less store space for non-food ranges in the 180 shops.