Sainsbury’s to shed 1,500 jobs in £1bn costcutting drive

SAINSBURY’S is poised to axe 1,500 jobs as it forges ahead with plans to cut £1bn in costs.

A simplification of operations will lead to roles being cut across the supermarket chain’s bakeries, warehouses and call centres, as well as in its head office. This forms part of efforts by Sainsbury’s to free up cash as it tries to lure shoppers back from rivals.

Around 1,500 roles are expected to be lost, although Sainsbury’s said these plans were still subject to consultation.

The job losses come after Simon Roberts, the chief executive, revealed the company’s new strategy earlier this month. Sainsbury’s has said it wants to strip £1bn in costs out of the business, on top of the £1.3bn already taken out in the three years to March 2024.

Cost-cutting plans will mean existing employees will also be asked to work more flexible hours. Mr Roberts said at the time: “We can’t afford to be carrying any inefficiency in our business.”

The latest changes include a shake-up across Sainsbury’s bakeries. It said it has launched a consultation with bakers in stores, adding that it has “reassured affected colleagues that it will find alternative roles for them where possible, as it will for any colleague affected by changes proposed”.

Other changes include a paring down of roles in its store support centre, with plans affecting people in its HR and supply chain teams, as well as in its fulfilment centres.

In the latest Kantar figures last month, Sainsbury’s lifted its market share to 15.6pc from 15.2pc a year earlier, having grown sales faster than Aldi.