Sainsbury’s is to cut up to 1,500 roles across its business as part of wider plans to save around £1bn over three years, announced last month.
The group stated that the move was part of its ‘Save and Invest to Win’ programme and would simplify its store support centre structure, create more efficient contact centre operations, consolidate its general merchandise fulfilment network, and improve its bakery offer and availability in some stores.
The retailer noted that savings created would be invested back into the business to deliver its new ‘Next Level Sainsbury’s’ strategy that aims to build on the success of its ‘Food First’ plan launched in 2020.
The group’s store support centre at its HQ will be restructured with leadership streamlining and changes to retail, transformation, HR, supply and logistics teams.
Meanwhile, Sainsbury’s will transfer the running of its Widnes contact centre, which is responsible for its Careline customer service line, to an existing third-party company. The plan is for the “vast majority” of workers to transfer to its service partner.
In-store, Sainsbury’s has begun overhauling its bakeries, with a focus on making “tastier, more distinctive products” with better product availability throughout the day. The retailer is currently consulting with an unspecified number of bakery staff, who will be offered alternative roles if impacted by the changes.
Meanwhile, Sainsbury’s stated that it plans to continue with the “consolidation and optimisation” of its general merchandise distribution network. The changes, including further investment in technology and automation, mean the retailer will need fewer local fulfilment centres, which will affect a “very small proportion” of workers.
Chief Executive Simon Roberts commented: “Our Next Level Sainsbury’s strategy is about giving customers more of what they come to Sainsbury’s for – outstanding value, unbeatable quality food and great service. One of the ways we’re going to deliver on this promise is through our Save and Invest to Win programme.
“As we move into the next phase of our strategy, we are making some difficult, but necessary decisions. The proposals we’ve been talking to teams about today are important to ensure we’re better set up to focus on the things that create a real impact for our customers, delivering good food for all of us and building a platform for growth.”
NAM Implications:
- Sainsbury’s are patently using a combination of reorganisation and outsourcing to reduce headcount costs.
- And 1,500 role cuts is small in relation to their 110,000+ headcount.
- The key issue is improved customer-facing service to improve profitability…
- …and the extent to which suppliers may be part of this process.
