Open Editor's Digest for free
Rula Khalaf, editor of the Financial Times, picks her favorite stories in this weekly newsletter.
J Sainsbury's has decided to cut 3,000 jobs, as the UK's second-largest supermarket chain seeks to cut costs and streamline its business.
The redundancies, amounting to 2 per cent of the group's workforce, will result from the closure of the store's remaining cafes and comprehensive changes at management level.
It is expected that about 20 percent of senior management roles will be eliminated. Sainsbury's He said on Thursday.
The decision comes after the company said last year that it would cut costs by £1 billion over the next three years.
The reorganization also comes amid what chief executive Simon Roberts described as a “particularly challenging cost environment” with retailers struggling with rising costs and taxes.
The grocery chain said it was overhauling the structure of its central management teams to “support faster decision-making and enhance performance” at both Sainsbury's and Argos, which are also owned by the group.
This will lead to fewer and more senior roles in head office with clearer accountability, the company said, adding that the changes will take effect in the coming months.
The company “had to make tough choices about where we could invest, and where we needed to do things differently to make our business more efficient and effective,” Roberts said.
