Sainsburys to cut 300 head-office roles as it restructures tech and Argos deliveries
sainsburys has announced plans affecting around 300 head‑office roles as it reorganises its technology and data teams and overhauls Argos’s delivery model, a move the group says will sharpen focus on both the supermarket and the general merchandise business.
Sainsburys splits technology and data into dedicated Argos and supermarket teams
The group said most of the proposed cuts fall in its technology and data division as it consolidates routine reporting tasks and reorganises the unit into one dedicated team for Argos and two separate teams for Sainsbury’s. Management framed the change as a way of “maximising the power of our data and technology” so teams can concentrate on “delivering great food, brilliant service and fantastic value for our customers. ” Employees impacted by the proposals have entered a consultation period.
Argos delivery network to be overhauled, with shift and warehouse changes
Changes to Argos’s local delivery hubs will alter team shifts so staff work more regular hours with less overtime. The overhaul covers the local warehouse teams and the same-day home delivery service, with a stated move to increase standard shift contracts. jobs were not at risk among the delivery driver workforce.
Separate Argos leadership board and Graham Biggart named to lead it
As part of the restructuring the group will create a separate leadership board for Argos, to be headed up by managing director Graham Biggart, alongside a dedicated technology team for the chain. The move is presented as strengthening the focus behind both Sainsbury’s and Argos as Argos continues to evolve within the wider group structure.
New regional store directors for Sainsbury’s Local convenience estate
The overhaul includes introducing four new regional store director roles dedicated to the convenience estate: one in the North of England, one in Central England and two in the South. The firm said the roles will give supermarkets and convenience shops a clearer leadership line, reflecting the view that “customers use supermarkets and convenience stores differently, so we’re updating our structures to reflect that. ”
Workforce numbers, prior cuts under Next Level and cost targets
The group currently employs around 140, 000 staff across the UK and said the changes affect less than 1% of that workforce. The shake-up forms part of year three of the Next Level strategy and follows a previous announcement in January 2025 to cut more than 3, 000 roles as part of a broader cost‑saving programme. That earlier programme included the closure of 61 in‑store cafés, the removal of patisserie and hot food counters and a 20% reduction in senior management roles. The supermarket is targeting £1bn in operating cost savings over three years.
Performance, competition and sector context
Sainsbury’s said it has increased sales at its supermarkets by 3. 4% in the three months to 3 January, while Argos sales fell 1% in the same period. The group has blamed “significant headwinds” for Argos’s struggles since the Covid pandemic, citing weak consumer confidence, heavy online competition and widespread discounting. That underperformance has prolonged speculation over plans for Argos after the business was the target of an approach from the Chinese group JD. com in the autumn.
Wider retail pressures: Asda, Aldi, Lidl, Tesco and Ocado
Industry pressure was cited as a factor behind the changes: ailing Asda was described as the UK’s number three supermarket chain attempting to turn around its fortunes with price cuts, while discount grocers Aldi and Lidl continue to open new outlets in the UK. Competitors are also reshaping: Tesco has confirmed plans to remove around 180 head‑office roles while creating approximately 250 new positions to support online growth and faster fulfilment, and Ocado Group is preparing to cut around 1, 000 roles globally, with the majority expected in the UK as it restructures amid softer‑than‑expected demand from international partners.
The retailer also pointed to recent digital consolidation moves: the standalone Chop Chop rapid delivery app, launched in 2016 to offer 60‑minute grocery delivery from around 50 stores, has been decommissioned and integrated into the main app to simplify the customer journey as shopping habits shift online.
On the strategic rationale, the group said the changes are being made “given the strong progress Argos is making on its More Argos, More Often plan and the scale of the opportunity in general merchandise. ”
