Supermarket giant Sainsbury’s has hinted at a possible loss of up to 600 head office jobs as it powers ahead in its £1.4 billion takeover of Home Retail Group.
However, the Big 4 stalwart said the merger deal, expected to be completed by September, could simultaneously lead to several hundred new jobs.
According to The Guardian, Sainsbury’s chief executive Mike Coupe insisted the takeover of Home Retail, which owns retail brands like Argos, was still going ahead despite the economic impact of the Brexit referendum.
Warnings of the possible risks to the UK economy and trade in Sainsbury‘s outlets in the wake of Brexit were outlined in an almost-200 page document published yesterday, but Sainsbury’s finance chief John Rogers said this was to be expected given the circumstances.
The document also outlines the possible loss of up to 600 roles across “corporate and suppprt functions”, but the final figure won’t be known until the takeover is completed in September. The supermarket retailer added that the openings of new Argos stores after the merger means new jobs would then be created.
The news comes after Sainsbury’s on Monday announced it was ending its joint venture trial with Danish discount chain Netto, closing all 16 of its UK stores in August and eliminating 400 jobs.