Sainsbury's to axe 1,500 jobs across UK in bid to save £1 billion a year
29 February 2024, 17:10 | Updated: 29 February 2024, 17:13
Sainsbury's will cut around 1,500 roles as part of plans that it hopes will cut costs by around £1 billion a year.
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The supermarket giant said that it would cut roles in its contact centre in Widnes, in Cheshire, at its in-store bakeries and a few at local fulfilment centres.
Chief Executive Simon Roberts has spoken on the "unsettling" but "necessary" decision.
"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," he said.
The business will reduce its workforce by around 1,500 jobs, but subject to consultation.
It said the money it saves will be reinvested into the business to give customers "great value, quality and service."
At Widnes, a "vast majority" of its staff will see their employment move to a different company which Sainsbury's already works with.
All of Sainsbury's Careline services will now be run by this external company, according to Sainsbury's.
It also plans to move more of its shops "to a more efficient way of freshly baking products".
Read more: Sainsbury's introduces AI security cabinets in latest bid to tackle spike in shoplifting
"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.
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."
It comes as administrators for The Body Shop have confirmed it will close several branches across the UK.
Read more: Body Shop shuts 75 branches across the UK: Full list of store closures revealed
489 jobs are now at risk nationwide.
The closures form part of a massive restructuring after the global beauty chain's UK arm went into administration earlier this year.
However, The Body Shop is expected to retain some stores, with 116 UK branches set to remain open.
