Sainsbury’s to axe 500 jobs in streamlining move

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Supermarket group Sainsbury’s today said it would be cutting about 500 jobs as part of a streamlining of its central operations.

The chain said the move comes as part of its strategic review aimed at saving £500 million over the next three years.

Chief executive Mike Coupe said the group plans to streamline its central divisions and bring its supermarkets and convenience store businesses together. The move will result in about 500 fewer roles, spread across all divisions and grades in our store support centres.

Coupe said: “We want to work through this period of uncertainty as quickly as possible, while making sure we consult with colleagues who are affected by these changes. We’re committed to treating all impacted colleagues with respect, during what we know will be a difficult time.

“I recognise that these changes will be difficult for our colleagues and I can assure you the decision to make them was not taken lightly. However, I’m certain that we will be in a stronger position to deliver our new strategy and better equipped to win in these times of change as a result.”

Rival Morrisons, which has started the hunt for a new chief executive after announcing Dalton Philips will be leaving in March, also said today that it plans to close ten loss-making stores this year, putting more than 400 jobs at risk, but did not reveal which branches will go.

Last week, Tesco boss Dave Lewis announced plans for 43 store closures and the cancellation of 49 new stores in its pipeline as the industry comes to terms with a continued squeeze from discounters such as Aldi and Lidl.