A SUPERMARKET giant is to cut around 1,500 roles as part of plans that it hopes will cut costs by around £1 billion a year.
Sainsbury’s said that it would cut roles in its contact centre in Widnes, in Cheshire, at its in-store bakeries and warehouses.
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The supermarket will reduce its workforce by around 1,500 jobs, but this is subject to consultation.
It said the money it saves will be reinvested into the business to give customers “great value, quality and service.”
Chief executive Simon Roberts said: “As we move into the next phase of our strategy, we are making some difficult, but necessary decisions.”
“I know today’s news is unsettling for affected colleagues and we will do everything we can to support them.”
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At Widnes a “vast majority” of its staff will see their employment move to a different company which Sainsbury’s already works with.
All of Sainsbury’s Careline services will now be run by this external company, Sainsbury’s said.
It also plans to move more of its shops “to a more efficient way of freshly baking products”.
Investment in technology and automation will also mean that the retailer will need fewer local warehouses, or fulfilment centres.
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This is where goods are packed and dispatched to fulfil orders, especially those made online.
A “very small proportion” of staff will be impacted and could be helped to find new roles where possible
Mr Roberts said: “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.”
Earlier this month, Sainsbury’s unveiled plans to overhaul its supermarkets with a focus on creating more food space.
Sainsbury’s said it will cut its general merchandise and clothing offering across many shops to boost its food ranges.
It means the company’s ‘Tu’ clothing sections could be reduced in size at dozens of major stores.
It comes after Sainsbury’s announced in July last year plans to close 100 UK branches of Argos over the next 12 months.
The move is part of the retailer’s plan to move away from the high street and focus on expanding its presence in supermarkets.
Argos currently has 1,103 locations, including 669 standalone stores and 431 sites inside Sainsbury’s stores.
Last year the high street retailer closed 47 UK shops, including all 34 of its branches in the Republic of Ireland in June.
Your rights in redundancy
Companies can choose to cut their workforce, but employees should understand their rights.
You are entitled to statutory redundancy pay, but only if you have worked at your job for two years or more.
The statutory rate is based on your age, weekly pay and number of years in the job.
You will get:
- Half a week’s pay for each full year you worked aged under 22
- One week’s pay for each full year you worked aged 22 or older, but under 41
- One and half week’s pay for each full year you worked while aged 41 or older.
But it’s capped at 20 years and the max redundancy pay you can get is currently £16,320.
Some companies may offer to pay more than the statutory amount. This will usually be in your contract.
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Plus, you are still entitled to any pay you are owed for untaken holiday days at the end of your notice period.
The government has a calculator on its website to help you work out how much you are owed.
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