Yahoo Finance Sainsbury's puts 1,150 jobs at risk as it seeks to boost online business
Sainsbury’s (SBRY.L) has announced plans to cut around 500 office jobs with a further 650 depot roles at risk as it seeks close one of its grocery packing hubs and ramp up its online business.
The supermarket chain, which also owns Argos, is looking to reduce its office space by at least one floor in Manchester and two floors in London and Milton Keynes. Another three offices in the country will also be affected, including one in Coventry and one in Victoria in London.
The majority of the jobs at risk are in human resources, supply chain and logistics, technology and general merchandise and commercial operations, it said.
Sainsbury’s added that its remaining office space would be adapted to create “collaborative workspaces” which would encourage more flexibility when they reopen.
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As part of the restructure, it revealed that it will close a London warehouse in June, however, it hopes to find jobs for those 650 staff in nearby stores, with any savings set to be invested into its core food operations.
Simon Roberts, chief executive at the UK’s second largest grocer, said: “Our new plan puts food first and will create a simpler, nimbler and more efficient business. The money we save will enable us to invest in what customers really care about – lower prices, exciting new products and the most convenient ways for them to shop.
“I know change is difficult, but to do the best job we can for our customers, it is vital that we adapt. I understand this will be a very difficult time for affected colleagues and we will do everything we can to fully support them.”
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Roberts, who took the helm in June 2020, said Sainsbury’s was now able to serve 850,000 online customers a week, having doubled capacity in the past year.
He added: “Our investment in London stores will enable more customers in the capital to access more home delivery and click-and-collect slots, as well as a variety of great value delivery options, such as four-hour saver slots for just £1.”
The news comes a week after supermarket rival Asda said it was axing thousands of back office jobs to focus on online growth.
Asda expects to cut up to 5,000 staff members as part of a drive, but is seeking to hire 4,500 people to pick internet orders.
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