Sainsburys — sainsburys to cut 300 jobs as it restructures tech team and Argos deliveries
sainsburys has confirmed that around 300 head office roles are at risk as it restructures its technology and data teams and overhauls the Argos delivery network, moves the retailer says will create clearer separation between the supermarket and Argos businesses.
Sainsburys head office and technology reorganisation
The London-based group said the majority of the proposed cuts will 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 the Sainsbury’s supermarket business. Employees impacted by the proposals have entered a consultation period. the changes affect less than 1% of its roughly 140, 000-strong workforce.
Argos delivery overhaul, same-day service and shift changes
Changes to Argos include an overhaul of its local delivery hubs and the same-day home delivery service, with local warehouse teams restructured and shift patterns altered so staff work more regular hours and carry out less overtime. The firm said jobs are not at risk among the delivery driver workforce, while it moves to increase standard shift contracts for hub teams.
Leadership reshuffle: regional store directors and a separate Argos board
The group will create four new regional store director roles focused on its convenience estate, with one role in the North of England, one in Central England and two in the South. At the same time Sainsbury’s is creating a separate leadership board for Argos to be headed up by managing director Graham Biggart and establishing a dedicated technology team for the chain.
Next Level strategy and prior cost-cutting measures
Executives framed the moves as part of the third year of the Next Level strategy. The group previously announced, in January last year, plans to cut more than 3, 000 roles, including about 20% of senior management positions and the closure of its remaining 61 in-store cafés; that earlier programme also removed patisserie and hot food counters. The supermarket has set a target of £1bn in operating cost savings over three years.
Investment in digital tools, Chop Chop integration and sector pressures
Sainsbury’s said it is investing more in technology to improve efficiency, naming AI forecasting tools and warehouse robotics as part of that push. The retailer has recently integrated its Chop Chop rapid delivery service into its main app; the standalone Chop Chop app, launched in 2016 to offer 60-minute grocery delivery from around 50 stores, has been decommissioned in favour of a single digital platform.
The announcement arrives as the wider supermarket sector adapts to heavy competition on price and store expansion by discounters. The group noted that ailing Asda, the UK’s number three supermarket chain, has moved to cut prices as it attempts a turnaround, while Aldi and Lidl continue to open new outlets. Rival operators are also changing tack: Tesco has planned to remove around 180 head office roles while creating approximately 250 new positions to support online growth and faster fulfilment, and Ocado has faced cuts — one report says about a fifth of its workforce was being axed while another notes the Ocado Group is preparing to cut around 1, 000 roles globally, the majority expected in the UK.
Argos performance, ownership history and market speculation
Argos, which sainsburys bought in 2016, has struggled since the Covid pandemic. The group has blamed "significant headwinds" from weak consumer confidence, heavy online competition and widespread discounting for a fall in sales over the all-important Christmas quarter. In the three months to 3 January the supermarket business increased sales by 3. 4% while Argos sales fell 1%, a performance that has prolonged speculation over whether the group might look to offload the retailer after it was the target of an approach from the Chinese group JD. com in the autumn.
A Sainsbury’s spokesperson said: "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 group added it was "strengthening our focus behind both Sainsbury’s and Argos" and that the changes reflect the scale of the opportunity in general merchandise and progress on the More Argos, More Often plan.
