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Sainsbury's to cut hundreds more management jobs
21 January 2020, 21:06
Sainsbury's has announced it plans to cut hundreds more management jobs in the company's most recent shake-up.
The supermarket chain blamed the cuts on its takeover of Argos, which it bought in 2016.
Sainsbury's would not confirm the exact number of roles that would be lost, but stated it would be in the "hundreds."
The supermarket giant and Argos will integrate head office functions - across departments including commercial, retail, finance, digital, technology and human resources - in cities including London, Milton Keynes, Edinburgh, Manchester and Coventry.
Since last March, the retailer has already cut the number of senior leadership roles by more than a fifth.
Chief executive Mike Coupe told staff: "We have to adapt to continue to meet the needs of our customers now and in the future and, while change can be hard, it's also necessary.
"We already have a sense of momentum across the business and can accelerate this by streamlining our structure and responding to customer needs more quickly.
"Truly integrating our business also unlocks efficiencies that we can reinvest in the things that matter most to our customers."
The firm stressed that job losses were part of previous plans to save £500 million in costs, highlighted after its failed merger with fellor supermarket Asda.
Two years ago, Sainsbury's announced plans to shake up its management team, which would put thousands of jobs at risk.
Duplicate jobs in the company have been scrapped, while it has also been forced to make savings due to a tough price war with German discounters, such as Aldi and Lidl.
The firm recently experienced falling sales over its Christmas quarter, with tough toy and video games markets offsetting a robust performance in food and clothing.
Sainsbury's saw like-for-like retail sales fall 0.7 per cent, excluding fuel, in the 15 weeks to 4 January.
Its performance was dragged lower by a 3.9 per cent fall in general merchandise sales - its worst performance since the group bought Argos.
The retailer also warned that trading is set to remain "highly competitive and promotional" in 2020, with ongoing consumer uncertainty clouding the outlook.