Sainsbury’s has confirmed that around 300 roles are at risk as it restructures its technology and data functions, with changes spanning both its core supermarket business and Argos.
The majority of proposed cuts will fall within the retailer’s technology and data division, which is set to be reorganised into one dedicated team for Argos and two separate teams for Sainsbury’s.
Head office operations will also be affected as the group looks to streamline decision-making and remove duplication.
Employees impacted by the proposals have entered a consultation period. The group currently employs around 140,000 staff across the UK.
The shake-up forms part of year three of Sainsbury’s ‘Next Level’ strategy, aimed at driving efficiency and strengthening commercial performance.
A spokesperson said the retailer is “strengthening our focus behind both Sainsbury’s and Argos” and maximising the power of data and technology to allow teams to focus on delivering “great food, brilliant service and fantastic value”.
Alongside the restructuring, Sainsbury’s will introduce four new regional store director roles dedicated to its convenience estate. Argos will also see its delivery model overhauled, with the creation of a separate leadership board as the business continues to evolve within the wider group structure.
The move follows the recent integration of Sainsbury’s Chop Chop rapid delivery service into its main app. The standalone Chop Chop app, launched in 2016 to offer 60-minute grocery delivery from around 50 stores, has now been decommissioned in favour of a single digital platform.
The retailer said the change simplifies the customer journey as shopping habits increasingly shift online.
The latest proposals come after Sainsbury’s announced plans in January 2025 to cut more than 3,000 roles as part of a broader cost-saving programme. That restructure included the closure of 61 in-store cafés, the removal of patisserie and hot food counters, and a 20 per cent reduction in senior management roles.
The supermarket is targeting £1bn in operating cost savings over three years.
Sainsbury’s is not alone in reassessing its structure. Ocado Group is preparing to cut around 1,000 roles globally, with the majority expected in the UK, as it restructures amid softer-than-expected demand from international partners.
Meanwhile, Tesco has confirmed plans to remove around 180 head office roles while creating approximately 250 new positions to support online growth and faster fulfilment.
For retail leaders, Sainsbury’s latest announcement sheds light a broader trend across the sector. Digital capability remains central to future growth, but investment is being paired with organisational simplification and tighter cost control.
As Argos continues its transformation within the group and supermarkets double down on data-led operations, structural change remains firmly on the agenda.
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