Sainsbury's announces major changes with THOUSANDS of jobs at risk

Jeannie Matthews
January 23, 2018

J Sainsbury PLC is to change the way it manages stores in the United Kingdom, the BBC reported on Tuesday, putting at risk "thousands" of shop floor jobs.

The supermarket chain is changing the way it manages its stores across the United Kingdom and scrapping some management posts.

It said employees whose jobs disappear would be offered alternative roles in the business but that could be with less status and pay.

Sainsbury's is the second largest chain of supermarkets in the uk, with a 16.9% share of the market.

It said in October it would cut up to 2,000 jobs mainly in its payroll and human resources departments, while about 400 jobs went in a store operations restructuring announced in March.

Sainsbury expects to cut costs by 185 million pounds in its current financial year, and is seeking a further 500 million pounds in reductions over the next three years.

The shake-up will see a slimming down of managerial posts in its supermarket and convenience stores across the United Kingdom, to be replaced by by fewer, better-paid management roles. Otherwise they face redundancy.

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Sainsbury's, which has stores in Cockermouth, Carlisle and Penrith, said the changes at both its supermarkets and convenience stores are "designed to meet the challenges of today's retail environment" and will result in a more "efficient" structure.

"Our intention is not to reduce overall headcount as a result of these proposals".

He added: "I appreciate this will be a hard time for those affected and we will fully support our people through these changes".

The news comes following Tesco's announcement earlier this week, putting 1,700 management roles at risk and deferring to 900 new roles.

"They are shrinking as the discounters have fuelled a need to be more competitive on price, at a time when the volumes that the retailers are selling reduce", said Philip Dorrell, managing partner at Retail Remedy. "Therefore, the stage is set and the decline of the grocers' workforce will continue", he said.

A spokesperson for Sainsbury's said they could not discuss roles at individual stores.

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