Sainsbury’s to axe 3,000 jobs and close all in-store cafes
Supermarket giant Sainsbury’s has confirmed plans to axe more than 3,000 roles as it prepares to close all its remaining in-store cafes.
The major overhaul will cut two per cent of its current workforce, which stands at 148,000.
The move will also make around 20 per cent of senior management roles at Sainsbury’s redundant.
The drive is part of the supermarket giant’s plans to focus on fewer, bigger roles and to simplify its head office and management teams.
The retailer also said it had decided to close its remaining 61 Sainsbury’s Cafes, subject to consultation.
Most Sainsbury’s shoppers do not use the cafes regularly, whereas in-store food halls and concessions have grown in popularity, it said.
Simon Roberts, Sainsbury’s chief executive, said the supermarket was facing a “particularly challenging cost environment” as it moves forward with its company strategy.
He said: “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.
“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.”
The news comes after Sainsbury’s, which also owns Argos and Habitat, revealed earlier this month that it enjoyed its “biggest ever Christmas”.
The retailer confirmed that its sales rose by 3.8 per cent in the six weeks to 4 January, while revenue at its Argos stores increased by 1.1 per cent.
Sainsbury’s currently has almost 600 supermarkets and more than 800 convenience stores.
Martin Hamilton, director and retail sector specialist at accountancy and advisory firm Menzies, said: “The news that Sainsbury’s is to cut 3,000 jobs shines a harsh light on the immense pressure retailers are under in the face of rising costs.
“With a £140m leap in costs from new tax measures on the horizon, businesses are being forced to rethink their structures to remain viable, but job cuts of this scale risk impacting employee morale and also come with a huge loss in institutional knowledge – both are critical.
“For Sainsbury’s and others in the sector, the real challenge lies in managing these changes responsibly; prioritising clear communication, retraining opportunities, and meaningful support for affected staff while protecting long-term business performance and customer loyalty.”