The goal of role reductions is to create cash that can be spent on luring customers back from competitors.
Sainsbury’s plans to reduce costs by £1bn will see 1,500 jobs cut.
The supermarket chain will simplify its operations by reducing the number of staff in bakeries, call centres, warehouses, and head office.
Sainsbury’s is trying to attract shoppers away from its rivals by reducing the amount of cash they spend.
Sainsbury’s has said that these plans are still subject to consultation.
These job losses follow the announcement by chief executive Simon Roberts of the new strategy for the company earlier this month. During that time, he refused to exclude redundancies.
Sainsbury’s wants to remove £1bn of costs from the business. This is on top of the £1.3bn that it has already removed in the past three years, up to March 2024.
Existing employees will be required to work flexible hours as part of cost-cutting plans. Roberts stated at the time that “we can’t allow any inefficiency to exist in our business.”
Sainsbury’s is reorganizing its bakeries to make it more efficient to serve freshly baked goods throughout the day.
It announced that it had launched a consultation for bakers working in the stores. The company added that they have “reassured all affected colleagues that we will do our best to find them alternative roles, just as we will do for any other colleague who is affected by today’s changes”.
The HR and Supply Chain teams will also be affected by the changes. The company said that investments in automation and technology would mean fewer local fulfillment centres. This will affect workers at these sites.
Sainsbury’s also said that it would be making changes to its customer service, and told the staff at its Widnes Contact Centre they had decided to outsource their work to an established partner.
The statement said: “The majority of affected colleagues will transfer to the service partner. This is a major company and offers a variety of career and redeployment options.”
This news comes just a few days after revealed, that Waitrose owner John Lewis would also be making changes to his customer service team. Hundreds of employees at third-party provider Foundever could face redundancy.
Sainsbury’s plans to shake up its staff as it looks to gain momentum following the success of regaining customers from Aldi and Lidl during the critical festive period.
Sainsbury’s has increased its market share from 15pc to 15.6pc in the latest Kantar figures, which were released this month. Its sales have grown faster than Aldi.
Roberts stated: “As our strategy moves into its next phase, we have to make some difficult but necessary decisions.
The proposals we discussed with teams today are important because they will help us focus on things that have a real impact on our customers. They’ll also allow us to deliver good food to all of you and build a platform for future growth. I understand that today’s announcement is upsetting for our colleagues, and we will support them in any way we can.
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