Sainsbury's to axe 500 head office roles as part of cost cutting plans

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Sainsbury’s is to axe 500 head office and store support centre roles as part of plans to achieve £500m in cost savings.

Sainsbury to axe 500 roles

Sainsbury’s has reviewed its central costs and structures in a bid to reduce costs and in order to streamline its central divisions it will bring its supermarket and convenience businesses together.

Overall there will be around 500 fewer roles at its head office and store support centres.

In a letter to staff, Sainsbury’s chief executive Mike Coupe said: “We want to work through this period of uncertainty as quickly as possible, while making sure we consult with colleagues who are affected by these changes.

“We’re committed to treating all impacted colleagues with respect, during what we know will be a difficult time.

“I recognise that these changes will be difficult for our colleagues and I can assure you the decision to make them was not taken lightly. However, I’m certain that we will be in a stronger position to deliver our new strategy and better equipped to win in these times of change as a result.

“The formal consultation started today. We expect the new structures to be in place by the start of the 2015/16 financial year and as a result, we will be set up to work more effectively together to better serve our customers.”

The move follows Tesco’s cost cutting plans unveiled by new boss Dave Lewis last week.