Sainsbury’s to axe 3,000 roles and shut cafes and counters

Sainsbury’s is set to axe 3,000 roles across the business as part of restructuring plans that aim to “simplify” its central divisions and management structures.As part of its three-year Next Level strategy, there will be a 20% reduction in management roles, while it is also set to close its remaining patisserie, hot food and pizza counters in order to “create space to offer more of its fresh food ranges in more stores”. 

The group is also closing its remaining 61 Sainsbury’s Cafés, subject to consultation, as part of the restructuring. According to the company, it comes as the majority of shoppers do not use the cafes regularly.

As part of these plans, which are targeting £1bn in cost savings, Sainsbury’s said it will also reorganise its head office departments to “become dedicated to the different needs of the Sainsbury’s and Argos businesses, while creating fewer, bigger roles with clearer accountabilities”. 

As part of these changes, Rhian Bartlett will become chief commercial officer, Sainsbury’s and Graham Biggart will be MD Argos and chief strategy and supply officer. 

In addition, Patrick Dunne, director of Property and Procurement, will also join the operating board as chief property and procurement officer and MD for SmartCharge.

Following the announcement, Sainsbury’s said it is talking to affected workers and will “explore redeployment opportunities where this is possible”. 

Simon Roberts, Sainsbury’s CEO, said: “We launched our Next Level Strategy almost a year ago and are totally focused on making good food joyful, accessible and affordable for everyone, every day. As a result, we’re seeing real momentum across our business, with a best-ever value position, leading quality and increasing market share. 

“As we accelerate into year two and beyond of our strategy, we are facing into a particularly challenging cost environment which means we have had to make tough choices about where we can afford to invest and where we need to do things differently to make our business more efficient and effective.”

He added: “The decisions we are announcing today are essential to ensure we continue to drive forward our momentum but have also meant some difficult choices impacting our dedicated colleagues in a number of parts of our business. We’ll be doing everything we can to support anyone impacted by today’s announcements.”