Sainsbury’s to Cut 3,000 Jobs by Closing Cafés and Counters

---

In a significant move aimed at streamlining operations and reducing costs, Sainsbury’s has announced plans to cut over 3,000 jobs across the UK.

The supermarket giant will close its remaining 61 in-store cafés, alongside shutting down its hot food, pizza, and patisserie counters.

This decision comes as part of Sainsbury’s broader strategy to save £1 billion over the next three years amidst rising operational costs.

Cost-Cutting Measures Amid Rising Expenses

The closures are a response to a challenging economic environment, marked by increased employer National Insurance contributions and a higher national minimum wage.

Despite a strong Christmas trading period, Sainsbury’s CEO Simon Roberts stated that these changes are necessary to manage cost inflation and improve the company’s efficiency.

“While we remain committed to serving our customers with great value and quality, these adjustments are essential to ensure we can continue operating effectively in a challenging cost environment,” Roberts explained.

Reallocation and Redeployment Efforts

Sainsbury’s has emphasized that it will make efforts to reallocate popular items from the closed counters to standard aisles and introduce more self-serve options for customers.

The company is also exploring opportunities to redeploy affected employees where possible, while offering support packages to those who may lose their jobs.

“We understand the impact these changes will have on our colleagues, and we are committed to supporting them during this transition,” Roberts said.

Senior Management Reductions

In addition to the closures, Sainsbury’s is set to cut 20% of senior management roles as part of its cost-saving drive. This move is expected to help the company adapt to the evolving retail landscape and focus resources on priority areas.

Industry Reaction

The decision has sparked mixed reactions across the retail industry. Analysts view the cuts as a necessary step to remain competitive in a sector grappling with mounting pressures from cost inflation and changing consumer behaviors.

However, unions have raised concerns about the scale of job losses and their impact on affected employees.

Future Outlook

As Sainsbury’s implements these changes, the company aims to maintain its commitment to providing customers with high-quality products and services while navigating an increasingly challenging economic landscape.

The retailer’s ability to adapt to these changes will likely shape its performance in the coming years.

This latest move by Sainsbury’s underscores the growing challenges faced by UK retailers as they seek to balance customer expectations with operational realities in a post-pandemic economy.

Also Read