Thousands of shop floor jobs are at risk as part of a great shock to Sainsbury’s.
The supermarket chain is changing the way in which it manages its stores throughout the UNITED kingdom and the demolition of some offices.
Sainsbury’s does not confirm the number of employees affected by the transfer, but said that it was “in the thousands”.
On Monday, the UK’s biggest supermarket chain, Tesco, has announced a cut of 1,700 shop floor management jobs.
Like other large grocery stores, Sainsbury’s is trying to cut costs and simplify its plans to save Â£500 million for the next three years.
At the beginning of this month, confirmed it was “on track” to get Â£185 m of cost savings this year, putting it above the target.
Sainsbury’s, which jostles for position as the UNITED kingdom is the second largest supermarket Asda, has more than 1,400 stores in the UNITED kingdom. Tesco to cut 1,700 workshop jobs Sainsbury’s boss: ‘britain through the worst’
The post will be replaced by less, but most of the better paid, the new management roles in each store.
Employees have the choice of applying for these new roles or accept a more junior position, in the case of failure. Otherwise you will face redundancy. ‘Difficult time’
Simon Roberts, retail and operations director of Sainsbury’s, said: “we are proposing a store management structure that can provide the best in class leadership and, in many cases, offer a better reward package for new management roles.
“The proposals to introduce a more efficient and effective structure, designed to meet the challenges of today’s retail environment. They will provide you with cost savings being invested in our offer, and our colleagues who continue to provide the best service for our customers.
“Our intention is not to reduce the workforce, as a result of these proposals.
“I appreciate this will be a difficult time for those affected and you will have the full support of our people through these changes.”
Rival Tesco has said that it intends to cut 1,700 jobs from its branches and warehouses as part of its turnaround strategy. However, it is also provided for the creation of 900 jobs and has said that he would try to move the staff affected by the cuts in new roles.
Tesco UK chief executive Matt Davies said the changes were “necessary to ensure our company remains competitive for the future.”
Tesco aims to make Â£1.5 billion cost savings over three years by 2020.
Philip Dorrell, managing partner at Retail Remedy, said the “ongoing stress” in the retail sector was driven by the need to reduce costs in the face of a reduction of profit margins.
“They are in decline, as the discount stores have fueled the need to be more competitive on price, at a time when volumes that retailers are selling reduce,” he added.
Discount retailers such as Aldi and Lidl have been picking up a lot of lost work by the major supermarkets, he added.
As a result, grocers have had to cut labour costs is one of their biggest costs. “Therefore, the stage, and the decline of the grocers’ work force will continue,” he said.