Sainsbury’s has outlined proposals to reduce around 1,500 roles as part of its save and invest to win programme which will see it aim to save £1bn over the next three years.
The plans, which are still subject to consultation, will see any savings created invested back into the business to deliver on the retailer’s Next Level strategy.
Other proposals include simplifying Sainsbury’s store support centre structure, creating more efficient contact centre operations, consolidating its general merchandise fulfilment network, and improving its bakery offer and availability in some stores.
In the store support centre, changes have been proposed to teams including retail, transformation, HR, supply chain and logistics to ensure Sainsbury’s has the right expert support and streamline some senior leadership structures.
To work more effectively with third party partners, the grocer has proposed to colleagues in its Widnes contact centre that all Careline services will now be run through an existing partner.
The vast majority of colleagues affected will be transferred to its service partner – a major employer that offers a range of career and redeployment opportunities.
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As part of its aim to be the ‘First Choice for Food’, Sainsbury’s has started a programme to move to a more efficient way of freshly baking products in-store and has outlined plans to switch more stores to this model.
The supermarket will be conducting a consultancy process with bakers in these stores and has reassured affected colleagues that it will find alternative roles for them where possible.
Sainsbury’s has also looked into how it can optimise its general merchandise distribution network and is speaking to colleagues about proposals to change how and where it moves stock in some locations.
The changes, which include further investment in technology and automation, mean the retailer will need fewer Local Fulfilment Centres.
Sainsbury’s said that the small proportion of colleagues who are affected are being supported through deployment to other roles in the business where possible.
However, the supermarket giant has plans to open more sites in other parts of the country this year, which will nationally lead to more locations and create more jobs overall.
Sainsbury’s chief executive Simon Roberts said: “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.”
He described the changes as “difficult, but necessary” to move ahead with the strategy.
“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.
“I know today’s news is unsettling for affected colleagues and we will do everything we can do support them,” Roberts added.
