Sainsburys to cut 300 head office jobs as tech teams and Argos delivery are restructured
Sainsburys is putting around 300 head office roles at risk as it restructures its technology and data functions and overhauls Argos delivery operations, moves the London-based retail group says will create clearer separation between the supermarket and Argos businesses.
Sainsburys split: dedicated tech teams for Argos and the supermarket
The bulk of the 300 proposed cuts will fall in technology and data, where the group is consolidating routine reporting tasks and reorganising teams into one dedicated unit for Argos and two teams for Sainsbury’s,; employees affected have entered a consultation period.
Argos delivery hubs to change shifts and reduce overtime
Changes to local delivery hubs for Argos include shifting teams’ hours so staff work more regular shifts with less overtime, part of an overhaul of the Argos delivery model that will also see a separate leadership board created for Argos within the wider group.
Four regional directors for Sainsbury’s Local convenience estate
The restructure will introduce four new regional store director roles dedicated to the convenience estate, and head office operations will be affected as the group seeks to streamline decision-making and remove duplication across its businesses.
Technology investments, Chop Chop consolidation and recent cost cuts
The latest changes follow investments in technology such as AI forecasting tools and warehouse robotics and the integration of the Chop Chop rapid delivery service into Sainsbury’s main app; the standalone Chop Chop app, launched in 2016 to offer 60-minute delivery from around 50 stores, has been decommissioned in favour of a single digital platform, which the retailer said simplifies the customer journey.
How much is affected and where this sits in a wider plan
the proposals affect less than 1% of its roughly 140, 000-strong workforce and form part of year three of its 'Next Level' strategy; the group previously announced plans in January 2025 to cut more than 3, 000 roles as part of a broader cost-saving programme that included closure of 61 in-store cafés, removal of patisserie and hot food counters and a 20% reduction in senior management roles, with a target of £1bn in operating cost savings over three years.
Sales trends, sector pressure and market context
Sainsbury’s said its supermarkets increased sales by 3. 4% in the three months to 3 January while Argos sales fell 1% in the period; Argos, which Sainsbury’s bought in 2016, has struggled since the Covid pandemic, with the group citing significant headwinds from weak consumer confidence, heavy online competition and widespread discounting for a fall in sales over the all-important Christmas quarter, prolonging speculation that the group may aim to offload Argos after an approach from the Chinese group JD. com in the autumn.
Rival moves and retail-wide restructuring
The announcement sits alongside wider sector moves: Tesco last week said it would cut almost 400 roles in a restructure of in-store bakeries, and separately confirmed plans to remove around 180 head office roles while creating approximately 250 new positions to support online growth and faster fulfilment; Ocado Group is preparing to cut around 1, 000 roles globally, the majority expected in the UK, and discount grocers Aldi and Lidl continue to open new outlets in the UK, adding pressure on traditional grocers as Asda attempts to turn around its fortunes with price cuts.
: "By maximising the power of our data and technology, we’re freeing up our teams to concentrate on what matters most – delivering great food, brilliant service and fantastic value for our customers. " The spokesperson also said the retailer is strengthening its focus behind both Sainsbury’s and Argos to allow teams to focus on commercial performance.
Next steps: affected employees have entered a consultation period and the group will proceed with the planned reorganisation of tech teams, the Argos delivery overhaul and the roll-out of the four regional store director roles as part of its ongoing Next Level strategy.
