Sainsburys to cut 300 jobs as sainsburys restructures tech team and Argos deliveries
Sainsburys is putting about 300 head office roles at risk as it reorganises its technology and data functions and overhauls Argos delivery operations, a move the group says is intended to sharpen focus across the supermarket and its general merchandise arm.
Scale of the proposals and workforce context
The London-based retail group says roughly 300 roles are at risk across its supermarket and Argos businesses. The company employs around 140, 000 staff in total, and it has said the changes affect less than 1% of that workforce. Employees impacted by the proposals have entered a consultation period as the head office and support functions are reviewed.
Technology and data split into one Argos team and two Sainsbury’s teams
Most of the potential cuts would fall within the technology and data division, which is being reorganised into one dedicated team for Argos and two separate teams for Sainsbury’s. The group plans to consolidate routine reporting tasks and create dedicated teams for each business to reduce duplication and streamline decision-making.
Sainsburys says it is investing more in technology to improve efficiency, including AI forecasting tools and warehouse robotics, and that the change will free up staff to focus on core retail activities. the company is "maximising the power of our data and technology" to allow teams to concentrate on delivering food, service and value for customers.
Argos delivery hubs reworked, same-day service and driver shifts adjusted
The overhaul includes restructuring local delivery hubs for Argos and changes to shifts so teams work more regular hours with less overtime, including within the same-day home delivery service. The firm says the overhaul of local warehouse teams will reduce overtime by increasing standard shift contracts, and it has stated that jobs are not at risk among the delivery driver workforce.
As part of that evolution, Sainsbury’s will create a separate leadership board for Argos, to be headed by managing director Graham Biggart. Argos, bought by Sainsbury’s in 2016, has struggled since the Covid pandemic; the group has pointed to significant headwinds from weak consumer confidence, heavy online competition and widespread discounting for a fall in sales over the key Christmas quarter.
Sales performance and speculation over Argos’s future
The group reported that supermarket sales rose by 3. 4% in the three months to 3 January, while Argos sales fell 1% in the same period. The poor performance at Argos has prolonged speculation that Sainsbury’s may look to offload the retailer; Argos was the target of an approach from the Chinese group JD. com in the autumn.
New regional store directors for the convenience chain
Alongside the tech and delivery changes, Sainsbury’s will introduce four regional store director roles dedicated to its convenience estate, Sainsbury’s Local. The roles will be split geographically with one in the North of England, one in Central England and two in the South, intended to give convenience stores clearer leadership lines and speed up local decision-making and execution.
Sector pressures and prior cost-saving moves
The announcement comes as major supermarkets reassess structures to control costs amid heavy price competition. The group says the shake-up forms part of year three of its Next Level strategy. The company had previously announced plans in January last year to cut more than 3, 000 jobs, which included closing its remaining 61 cafés and removing about 20% of senior management roles; one account of that prior plan dates it to January 2025 and likewise cites cuts of more than 3, 000 roles.
Competitors and wider retail moves cited alongside Sainsbury’s changes include Tesco cutting almost 400 roles in an in-store bakery restructure and separate plans referenced to remove around 180 head office roles while creating roughly 250 new positions to support online growth. Retail technology groups have also been affected: one report noted about a fifth of a rival grocery tech firm's workforce was axed, and another noted preparations to cut around 1, 000 roles globally, with the majority expected in the UK. Discount grocers Aldi and Lidl continue to open new outlets, and the ailing Asda — the UK’s number three supermarket chain — has been attempting to turn around its fortunes with price cuts, all adding pressure on established retailers.
Sainsburys says the moves aim to strengthen focus behind both the supermarket and Argos, simplify the organisation and capture opportunities in general merchandise while driving efficiency across its business.
