Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Sainsbury’s to cut 3,000 head office jobs and close cafés in £1bn cost-cutting drive

by January 23, 2025
January 23, 2025
Sainsbury’s to cut 3,000 head office jobs and close cafés in £1bn cost-cutting drive

Sainsbury’s is planning to shed more than 3,000 head office positions and shut its remaining in-store cafés in a bid to reduce costs by £1 billion. As Britain’s second-largest grocer, the company employs around 150,000 people across more than 1,400 shops nationwide.

The business said it was contending with “a particularly challenging cost environment” following recent budget tax increases and had been forced to make “tough choices” to boost efficiency. Part of these efforts will see Sainsbury’s reorganise its management structure, including an expected 20 per cent reduction in senior roles over the coming months, subject to consultation.

The cuts follow Sainsbury’s announcement last week that hourly paid workers would receive a two-stage pay rise of 5 per cent, worth more than £1,100 a year on average. They also build on a plan revealed in February to eliminate 1,500 roles, including some at head office, as part of the retailer’s “next level” strategy to restructure and “right-size” the business by reallocating space from general merchandise and clothing to food.

In a move to simplify operations further, Sainsbury’s said it would close its remaining 61 in-store cafés, subject to consultation. It highlighted that most loyal customers rarely visit the cafés and have shown greater interest in outlets run by specialist partners. The chain added it would also discontinue its less-popular patisserie, hot food and pizza counters, replacing them with items in stronger demand.

Simon Roberts, the chief executive, credited Sainsbury’s strategy for generating “real momentum” across the business, pointing to improvements in the retailer’s value proposition, quality and market share. He nevertheless acknowledged “a particularly challenging cost environment”, which had prompted “tough choices about where we can afford to invest and where we need to do things differently”. He pledged to offer full support to colleagues affected by the job cuts.

Roberts had cautioned earlier that he would “look very carefully” at future hiring plans in light of looming wage pressures, despite the business enjoying what it called its “biggest ever” Christmas. The rise in employers’ national insurance contributions from April is expected to add about £140 million to the grocer’s costs.

Clive Black, an analyst at Shore Capital, noted that Sainsbury’s decision to streamline its operations was unavoidable “in the face of very considerable UK government sourced cost expansion”. He also echoed the grocer’s own data, suggesting that most of its loyal shoppers rarely use the cafés.

Sainsbury’s shares, which have fallen 8.5 per cent in the past year, were down a further 0.4 per cent at 256½p in afternoon trading.

Read more:
Sainsbury’s to cut 3,000 head office jobs and close cafés in £1bn cost-cutting drive

0
FacebookTwitterGoogle +Pinterest
previous post
Goldman Sachs predicts six interest rate cuts by mid-2026 as economy cools
next post
Rachel Reeves to relax non-dom tax rules as millionaire exodus rises

You may also like

Morrisons rebounds from cyber‑disruption with stronger second‑quarter sales

June 19, 2025

Formula One World Champion Max Verstappen race suit...

July 19, 2023

Jay Precision Unveils Cutting-Edge Engineering Solutions at the...

October 30, 2023

Apple agrees to £77M settlement over alleged Siri...

January 4, 2025

Cloud2Me Survey Unveils Major IT Hurdles Faced by...

November 25, 2024

London fintech firms KoinKoin and SR FINANZMANN close...

February 6, 2024

BBC demands Huw Edwards return over £200,000 in...

August 9, 2024

BBC and rival broadcasters fined £4.2m for colluding...

March 21, 2025

Ukraine’s history unveiled

December 23, 2024

Tesla eyes UK sales with Milton Keynes warehouse...

April 12, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Iran regime escalates repression toward ‘North Korea-style model of isolation and control’

      July 4, 2025
    • UK revealed as Europe’s worst country for commuters in new ranking

      July 4, 2025
    • This July 4th, a family waits: American hostage’s father pleads for son’s freedom from Hamas terrorists

      July 4, 2025
    • $88m methane-tracking satellite lost in space, dealing major blow to climate monitoring

      July 4, 2025
    • New US visa rules will force foreign students to unlock social media profiles

      July 4, 2025
    • The real Formula 1: British Grand Prix highlights UK’s £16bn motorsport economy

      July 4, 2025

    Categories

    • Business (8,393)
    • Investing (2,102)
    • Politics (15,945)
    • Stocks (3,189)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved