Sainsbury’s wants to cut 1,000 jobs

Sainsbury’s, the second largest supermarket chain in the United Kingdom, is allegedly planning to cut 1,000 office jobs in order to save up to 500 million pounds (550 million euro).

Cut costs

Sainsbury’s appointed management consultant firm McKinsey to find ways to lower the company’s cost structure and one of the proposed measures allegedly is to cut about 1,000 jobs.

This plan would contribute to its three-year plan to cut up to 500 million pounds by March 2018. Back in March 2017, it already revealed it would cut 400 supermarket jobs and tweak 4,000 employees’ working hours to lower the supermarkets’ costs. One solution was to eliminate night shifts at 140 stores. 

Compete with discounters

Sainsbury’s currently employs 3,000 people in its offices and about a third may be cut now, mainly in human resources and personnel training. Sainsbury’s will apparently reveal the full extent of the plan next month.

With this new measure, the company is doing what every other major supermarket chain in the United Kingdom is doing. They have all looked for ways to lower costs a lot, in order to compete with discounters like Aldi and Lidl. Both discounters are continuously gaining market share.