A major UK supermarket has announced it will cut more than 3,000 jobs, shut its remaining in-store cafes, and remove its pizza and hot food counters from stores as part of a major overhaul. The headcount reduction at Sainsbury’s represents about 2% of the company’s current 148,000-strong workforce. It will see about 20% of senior management roles cut at the supermarket giant as part of plans to focus on fewer, bigger roles and to simplify its head office and management teams. The retailer also said it had decided to close its remaining 61 Sainsbury’s Cafes, subject to consultation. The majority of Sainsbury’s shoppers do not use the cafes regularly, whereas in-store food halls and concessions have grown in popularity, it said. It will also close its remaining patisserie, hot food and pizza counters in-store and make the most popular items available in the aisles instead. The measures are part of plans by the UK’s largest supermarket group to save £1 billion over three years. It comes almost three years after it shut 200 in-store cafes amid waning demand from shoppers. Cafes will shut at the following locations: Simon Roberts, Sainsbury’s chief executive, said the supermarket was facing a “particularly challenging cost environment” as it moves forward with its company strategy. The news comes amid a backdrop of supermarkets and other retailers warning of cost pressures ahead of new Budget measures due to come into effect from April. These include a rise to the minimum wage, and a higher employer national insurance rate. While these moves are designed to boost pay for staff, businesses have sounded the alarm over increased operating costs, which ultimately may have to be passed on to the consumer in the form of higher prices at the tills. Major retailers like Next have already confirmed that price increases are on the horizon, describing a planned 1% rise as "unwelcome" but unavoidable. A personalised morning news round-up with UK Today - sign up here. Earlier this month, Sainsbury’s announced it was giving a 5% wage increase to staff following a record-breaking Christmas performance, driven by high demand for party food and celebratory drinks. The inflation-beating 5% pay rise being handed to its 118,000 hourly-paid workers will see the annual pay for full-time employees outside London rise from £22,882 to £24,026 by August. Hourly pay for Sainsbury’s and Argos staff will increase from £12 to £12.45 in March, with a further rise to £12.60 in August. In London, workers will see their hourly rates climb from £13.15 to £13.70 in March, then to £13.85 in August. Are you job-hunting? To view thousands of roles available right now, visit the JobsToday website.
