Although we’re just three months into 2024, already some of the UK’s largest supermarkets and FMCG brands have unveiled plans to cut jobs.
We take a look at what grocery leaders are cutting jobs, what the changes involve and how many roles could be axed.
Waitrose
In January, it was reported that Waitrose owner the John Lewis Partnership is looking to axe up to 11,000 jobs as it vies to cut its cost base by £900m.
This would see the retail giant slash more than 10% of its 76,000 workforce over the next five years via redundancies and not replacing staff who leave.
Although it is understood that the job cuts will hit Waitrose sister company John Lewis more heavily, the group’s head office staff are thought to be the most vulnerable.
Waitrose is also proposing to close its Enfield delivery warehouse this summer, in a move that will save the grocer over £8m but see 545 jobs axed.
In a letter to warehouse staff, online director Laura Burbedge explained the lease on the 110,000 sq ft north London site is due to come to an end in 2025, reported Retail Week.
It stated: “While exploring contract negotiations with the landlord is possible… we know our rent costs at Enfield will increase”.
“With this in mind, regrettably we’re proposing to close the Waitrose Enfield customer fulfilment centre (CFC) on July 20 and move order volume into Waitrose Coulsdon and Greenford CFCs.”
Sainsbury’s
In February, Sainsbury’s outlined proposals to reduce around 1,500 roles as part of its ‘save and invest to win’ programme, as it aims to save £1bn over the next three years.
The retailer has proposed changes to teams in its store support centre including retail, transformation, HR, supply chain and logistics, and it is also conducting a consultancy process with some bakers as it plans to switch to a more efficient way of freshly baking products in-store.
In a bid to optimise its general merchandise distribution network, Sainsbury’s is also speaking to colleagues about proposals to change how and where it moves stock in some locations, meaning the retailer will need fewer local fulfilment centres.
The grocer has said that it will find alternative roles for affected colleagues where possible.
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.
Sainsbury’s chief executive Simon Roberts described the changes as “difficult, but necessary” to move ahead with the strategy.
He described the proposal as “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”.
Morrisons
Earlier this month, Morrisons began a consultation programme over a management restructure of its logistics network, which is understood to affect almost 300 job roles.
According to documents seen by The Grocer, the proposals will have an impact on all seven of the supermarket’s company-run distribution centres, with each moving to a single operation manager role.
The changes would also remove team manager roles in Morrisons’ ambient supply chain and reduce the number of roles in its chilled operations, as well as the amount of managers and co-ordinators working in canteen teams.
Morrisons is understood to have notified workers that 297 roles including warehouse managers, team managers, canteen co-ordinators and people advisers would be put up for redundancy.
The selection process will be based on factors such as interviews, disciplinary records, and performance.
As part of the consultation process, which is expected to be completed by 21 April, workers will be offered alternative roles where possible.
A Morrisons spokesperson said the proposals came as part of its ongoing plans to “speed up and simplify the business”.
“The proposed restructuring will lead to a more responsive and simpler structure that will be better able to support our retail operations seven days a week.”
Naked Wines
In January, Naked Wines unveiled plans to axe jobs as it looked to slash costs to claw back profit.
Founder and executive chairman Rowan Gormley said the online wine retailer had become a “smaller company” post-pandemic and was forced to adjust its cost base to reflect this.
The job cuts impact “all levels of the organisation”, with around 50 jobs thought to be affected. lt will save Naked Wines £7m a year.
It comes as sales at the wine retailer fell 10% year on year in its golden quarter, while its average repeat customer base dropped by 12%.
Gormley described the decision to cut jobs as “painful”, but added it was a necessary move to recover as much profit as possible.
Kellogg’s
Last month, Kellogg’s unveiled proposals to close one of its main UK factories, putting hundreds of jobs at risk.
The cereal giant is thought to be considering ending production at the plant located in Trafford Park, Greater Manchester as early as the end of 2026.
It has started a consultation with the 360 workers potentially affected.
The Corn Flakes, Rice Krispies and Coco Pops maker said the decision was made after it concluded it could not see a “long-term future” for the facility.
UK managing director Chris Silcock said: “We can’t escape the fact the site opened in 1938. It’s laid out in a way that made sense in the 1930s, with food travelling up and down six floors to be made.
“What’s more we only use half the space in the buildings and the investment required to maintain the factory in the coming years is simply not viable.”
Pladis
Late last year, GMB Union said that Jacob’s Cream Crackers owner Pladis planned to make more job cuts which could affect more than 350 workers.
The changes at its factory in Aintree, Liverpool, which was the first Jacob’s factory in England and is the main producer of the brand’s products, could see nearly half of the 763-employed workforce made redundant from December 2024.
A Pladis spokeswoman said: “Jacob’s is one of the most iconic brands in the UK and has been around for over 100 years. To ensure it can remain for another 100 years, it is essential we address the current constraints we have at Aintree.
“We have therefore proposed some changes at the site which include a significant investment in the infrastructure but reducing the overall site footprint. This proposal will now be subject to consultation with our employees as it could result in a reduction in roles at Aintree from December 2024.
“We will do everything we can to support our colleagues through this uncertain time.”
AG Barr
Irn-Bru maker AG Barr could be cutting almost 200 job roles amid changes to its operations.
The drinks giant has proposed to close direct sales operations for Barr Soft Drinks at its Moston, Wednesbury and Dagenham sites as it moves away from its model of delivering directly to independent retailers and convenience stores, to a field sales operation through its wholesale channels.
The change, which is likely to be completed in June, will affect up to 160 jobs at the three UK sites.
AG Barr is also looking to make cuts at Boost as it plans to merge the energy drink brand – which it acquired in 2022 – into its Barr Soft Drinks business by the end of 2023.
The changes will result in the closure of the brand’s Leeds office and will affect 35 employees.
AG Barr said: “The proposals are subject to full and proper consultation with impacted employees over the coming months.
“The company will do everything possible to support those affected throughout the process.”
Unilever
Unilever is planning to spin out its ice cream division and slash around 7,500 jobs worldwide as it seeks to become a “leaner and more accountable” business.
The move will impact ice cream brands such as Magnum, Ben & Jerry’s, Wall’s and Cornetto, with the “full separation” from the group expected by the end of 2025.
The decision is designed to help the development of the ice cream brands, which it said had “distinct characteristics” compared to other divisions, with Unilever believing the changes would “create a world-leading business” and “drive stronger performances”.
Unilever expects the productivity plan to deliver total cost savings of around £630.5m (€800m) over the next three years.
Pilgrim’s Food Masters
Pilgrim’s Food Masters, which makes ready meals for supermarkets including Morrisons, Aldi and Waitrose, has announced up to 260 redundancies at its site in Dean Way, Southall and is to enter a statutory 45-day consultation with staff.
GMB senior organiser Gavin Davies described the the proposed closure of the site as a “massive blow” to its members.
He added: “GMB will fight tooth and nail for workers to be paid every penny they are due.”
Pilgrim’s said the move comes as it is “continuing to face industry challenges and lower than expected market volumes.”
“In light of these market conditions – and in order to ensure business continuity and protect jobs – we have had no choice but to review the shape of our business.”
The food manufacturer added: “Following a thorough assessment, we have identified ways to maximise the capacity across our sites and are proposing to consolidate our total ready meals volume into Attleborough and Windmill Lane. This unfortunately means the proposed closure of our Dean Way site.”
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Why all the job losses. These companies are probably making a profit, but they still want to cut jobs. Why? Don’t they even care about people’s livelihoods, no I guess not. All these companies just want to line their pockets. Shame on them.
Tesco been cutting jobs for years but they do it on a store by store basis so as not to raise any publicity