Sainsbury to lay off hundreds more managers as part of half-billion pound cost-saving drive
Sainsbury’s is to lay off hundreds more managers as part of a half-billion pound cost-saving drive.
The job losses will come on top of cuts made last year which eliminated 20 per cent of the grocer’s senior leadership team.
The latest wave of departures comes as a result of the further integration of Sainsbury’s with Argos, the consumer electronics and homeware group that it bought for £1.4billion in 2016.
A fresh round of job losses at Sainsbury’s will come on top of cuts made last year which eliminated 20 per cent of the grocer’s senior leadership team
In particular, there will be moves to reduce the payroll by fusing more teams in the commercial, retail, financial, digital, technology and human resources departments.
Sainsbury’s declined to put a figure on the number of jobs lost in the original 20 per cent reduction in management headcount, and yesterday would say only that the new cuts would run into the hundreds.
Recently, it announced disappointing Christmas sales, with like-for-like turnover, excluding fuel, falling 0.7 per cent in the 15 weeks to January 4.
Clothing sales rose 4.4 per cent, general merchandise dropped 3.9 per cent while grocery sales climbed 0.4 per cent.
Mike Coupe, chief executive, told staff: ‘We have to adapt to continue to meet the demands of our customers now and in the future and, while change can be hard, it’s also necessary.
‘Truly integrating our business also unlocks efficiencies that we can reinvest in the things that matter most to our customers.’
Coupe added that there was ‘a sense of momentum across the business’.
Shares closed 1.7 per cent, or 3.6p, down at 212.4p.