Following on from last week’s news that Tesco will close its headquarters alongside 43 stores, and this morning’s news that Morrison’s will stop trading at 10 loss making stores, another Big Four supermarket chain will follow suit.
In November last year, Sainsbury’s said it planned to make £500m of savings by 2018. It has reviewed its central costs and structures and will cut 500 head office and store support centre positions in a bid to achieve that plan.
The grocer will bring its supermarket and convenience businesses together so as to reduce costs and streamline central divisions.
In a letter to staff, Sainsbury’s Chief Executive Mike 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.
The formal consultation started today. We expect the new structures to be in place by the start of the 2015/16 financial year and as a result, we will be set up to work more effectively together to better serve our customers.”
There will be a 12-week consultation process to decide precisely which jobs will go.