Sainsbury's cuts 1,500 jobs in bid to reduce costs

Sainsbury's has announced it is cutting around 1,500 jobs, subject to consultation, as part of plans it hopes will save around £1bn a year.

The retailer said roles would be lost at its contact centre in Cheshire, in-store bakeries, and some local fulfilment centres.

Some staff will be redeployed, with alternative roles found "where possible".

The savings will be invested back into the business, the retailer added.

Announcing the news, Sainsbury's said "the vast majority" of jobs at its Widnes call centre would be transferred to its service partner, Careline services. It described it as "a major employer" and said it offered a "range of career opportunities".

The supermarket said it had begun moving to a more efficient way of baking goods in-store, and had outlined plans to move more stores to the model.

"As a result, the supermarket will be conducting a consultancy process with bakers in these stores," the retailer continued.

Sainsbury's said it had reassured colleagues that it would find alternative roles for them where possible, as it would "for any colleague affected by changes proposed".

Jobs are also being cut from the retailer's merchandise distribution network, with Sainsbury's confirming more investment in technology and innovation, meaning the company will need fewer local fulfilment centres.

Sainsbury's chief executive Simon Roberts summed up the changes as the next part of its strategy to deliver value and good service to customers, while making "difficult but necessary decisions".

"I know today's news is unsettling for affected colleagues and we will do everything we can to support them," he added.