NEWS

Sainsbury’s to cut 2000 jobs

Published on: 19th October 2017

Store and back office roles cut in effort to slash costs by £500m amid an intensifying price war with Aldi and Lidl.

The retailer is restructuring its HR departments, getting rid of 1,400 store-based clerks and another 600 staff based in the back offices that serve the chain as well as Argos and Sainsbury’s bank.

Sainsbury’s, which employs about 119,000 full-time staff, is moving towards a centralised HR model as it overhauls to save hundreds of millions of pounds.

The company will reach the end of a three-year plan to save £500m in March 2018 but Mike Coupe, the chief executive, has said it will then embark on a new programme designed to save the same amount again.

In March, Sainsbury’s said it was cutting 400 jobs in store while another 4,000 workers would face changes to their working hours as it looked to run its supermarkets more cheaply. The changes included scrapping the night shift in 140 supermarkets.

Sainsbury’s has been working with McKinsey, the management consultancy, on the headcount reduction plan. The changes to HR mean tasks like processing payroll will no longer be done in store. The 600 head office staff affected by the other change, first reported by the Times, are based in Manchester, Coventry, Edinburgh and London.

 

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