Sainsbury's to slash thousands of jobs in £500m cost-cutting scheme

The UK’s second biggest supermarket chain is cutting thousands of jobs across its store network and central offices.

To save £500m in the face of growing competition from discount retailers and the rising cost of food, Sainsbury’s is reducing its HR and payroll workforce by 1,400.

Other changes could see a further 600 jobs lost – primarily in the HR teams across its supermarkets, bank business and recently acquired Argos.

Sainsbury’s, which employs almost 200k people group wide, said it would offer affected staff alternative roles where possible.

In April 2015, the firm announced 800 job cuts in an attempt to restructure its in-store operations.

In November last year, it revealed the new plan to slash its operating costs by £500m before 2020.

Sainsbury’s is not the only Big Four UK supermarket feeling the competition from discount retailers such as Aldi and Lidl.

Rival Tesco is also reducing its workforce, having confirmed it is cutting thousands of jobs at its head office and Cardiff call centre.

According to the BBC, shopworkers’ union Usdaw said it will support affected Sainsbury’s staff and look at the company’s business case for the making the cost-cutting measures.

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