// Up to 1150 staff at risk as Sainsbury’s launches new restructuring scheme
// The restructure will result in 500 office job cuts & an additional 650 warehouse jobs are placed in consultation
// Sainsbury’s says it will relocate most of warehouse staff to nearby stores
Around 1150 jobs are at risk at Sainsbury’s as part of a restructuring which will cut about 500 head-office roles, reduce office space and shut down one of its warehouses.
The Big 4 grocer said the proposals, which are subject to consultation, were aimed at freeing up money reinvest a new “Food First” strategy.
Sainsbury’s confirmed that the 500 job cuts will affect head office staff across commercial operations, HR, supply chain and logistics, technology, general merchandise and clothing functions.
The head office in question, location in Holburn in central London, will also have its space reduced by two floors.
Meanwhile, Sainsbury’s said it would close down its online fulfilment centre in Bromley-by-Bow, east London – a move that places 650 staff into consultation.
The retailer said that it would try and redeploy most of the warehouse’s affected staff to nearby stores to assist with online pick-and-pack services as part of plans that will see over 20 stores in and around London have their online departments expanded by March 2022.
The food lab and bakery college, currently based at Sainsbury’s Bromley-by-Bow warehouse, will also move to nearby locations.
In addition, Sainsbury’s said it would close down its Walsgrave, Coventry and London Origin offices, partially close its Beech office in Antsy, and reduce office space in Avebury, Milton Keynes and Manchester.
The retailer said staff based in these offices would be relocated to existing Sainsbury’s offices which are being “adapted to create more collaborative workspaces” and “encourage greater flexibility” once offices can welcome staff back once it’s safe to do so after the Covid-19 pandemic.
“Our new plan puts food first and will create a simpler, nimbler and more efficient business,” Sainsbury’s chief executive Roberts said.
“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.”
He added: “Thanks to the tremendous efforts of our colleagues, we have doubled our online capacity since this time last year and we can now serve over 850,000 customer orders every week.
“As customer demand changes, we need to be able to adapt quickly. 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 rival Asda announced consultations with around 5000 staff amid its own major shake-up of office operations.