https://www.linkedin.com/in/brian-moore-038b8112/recent-activity/all/
Sainsbury’s is set to cut thousands of jobs through the closure of its hot food counters and cafes, and by reducing senior management roles, amid concerns about higher labour costs from impending tax rises.
Sainsbury’s stated that the move was part of its three-year ‘Next Level’ strategy, which aims to bring more of its core food ranges to customers, while simplifying central divisions and management structures.
To create more space for its fresh food ranges, the company wants to close its remaining patisserie, hot food and pizza counters. In a further move to simplify the business, Sainsbury’s also plans to close its remaining 61 in-store cafés, subject to consultation.
They are also making changes to its central management structures to support “faster decision making and drive performance” in Sainsbury's and Argos.
Moves include:
Rhian Bartlett to CCO Sainsbury’s, Graham Biggart to MD Argos & Chief Strategy and Supply Officer. Patrick Dunne, to Operating Board as Chief Property and Procurement Officer & MD SmartCharge.
In seeking £1bn of operating cost savings, all head office depts to become dedicated to the different needs of its Sainsbury’s and Argos businesses, while creating “fewer, bigger roles with clearer accountabilities”.
Sainsbury’s want to drive faster decision-making and costs reduction via h estimated 20% reduction in senior management roles over 3 month.
Overall, a proposed 3,000 reduction in roles across the business via discussions with staff affected and exploring redeployment opportunities where possible.
Chief Executive Simon Roberts:
“As we accelerate into year two and beyond of our strategy, we are facing into a particularly challenging cost environment, which means we have had to make tough choices about where we can afford to invest and where we need to do things differently to make our business more efficient and effective".
“The decisions we are announcing today are essential to ensure we continue to drive forward our momentum but have also meant some difficult choices impacting our dedicated colleagues in a number of parts of our business. We’ll be doing everything we can to support anyone impacted by today’s announcements.”
Clive Black, head of consumer research at Shore Capital, said Sainsbury’s had unveiled “further, increasingly necessary steps post the autumn Budget, to manage its cost base to enable ongoing investment”.
NamNews Implications
* Either cut job numbers, or raise shelf prices..
* Looks like Sainsbury’s want to try the ‘job-cut’ route before raising prices
* In their attempt to deliver £1bn of operating cost savings
* Anticipate similar moves from rivals as the Autumn Budget Tax increases impact the bottom line..
JobCuts Sainsburys
