Sainsbury’s to cut 3,000 jobs and close its cafes
Sainsbury’s has said it will be cutting 3,000 jobs as it announced plans to close its cafes and patisserie, hot food and pizza counters.
The move forms part of its strategy to become customers’ First Choice for Food.
The retailer said the closures will enable it to create more space for fresh food ranges in its stores, although the most popular food items from the counters will be made available in its aisles.
As part of its ongoing programme to deliver £1 billion of cost savings, Sainsbury’s is also planning to update its central divisions and management structures, including the reorganisation of its head office departments.
Never Miss a Retail Update!This will include creating “fewer, bigger roles” as the retailer looks to drive faster decision making and bring costs down through an estimated 20% reduction in senior management roles over the next few months.
Simon Roberts, Sainsbury’s chief executive, said: “We launched our Next Level Strategy almost a year ago and are totally focused on making good food joyful, accessible and affordable for everyone, every day.
“As a result, we’re seeing real momentum across our business, with a best-ever value position, leading quality and increasing market share.
“As we accelerate into year two and beyond of our strategy, we are facing into a particularly challenging cost environment which means we have had to make tough choices about where we can afford to invest and where we need to do things differently to make our business more efficient and effective.”
Sainsbury’s has also announced updates to its central management structures to support faster decision making and drive performance at both Sainsbury’s and Argos.
Rhian Bartlett is to become chief commercial officer, while Graham Biggart will be managing director for Argos and chief strategy and supply officer.
Meanwhile, Patrick Dunne, director of property and procurement, will join the supermarket’s operating board as chief property and procurement officer and managing director for Smart Charge.
Sainsbury’s said the proposals have been shared with colleagues and that those affected will be able to explore redeployment opportunities where possible.
Roberts added: “The decisions we are announcing today are essential to ensure we continue to drive forward our momentum but have also meant some difficult choices impacting our dedicated colleagues in a number of parts of our business.
“We’ll be doing everything we can to support anyone impacted by today’s announcements.”
