Sainsburys to cut 300 jobs as it restructures tech team and Argos deliveries; sainsburys confirms head office changes
sainsburys is cutting around 300 head office jobs as it restructures its technology and data functions and overhauls Argos deliveries, creating more separation between the supermarket and Argos businesses. The firm said most of the proposed cuts fall within technology and data as it consolidates routine reporting tasks and creates dedicated teams for Argos and for the supermarket.
Sainsburys tech reorganisation
The London-based retail group said the technology and data division will be reorganised into one dedicated team for Argos and two separate teams for Sainsbury’s, with the majority of the 300 roles at risk in that area. The business described part of the work as “consolidating routine reporting tasks. ” Employees impacted by the proposals have entered a consultation period.
Argos delivery overhaul and shifts
Changes to Argos include a restructure of the local delivery hubs and an overhaul of the same-day home delivery service. The group said local warehouse teams will be reorganised, teams’ shifts will change so staff work more regular hours with less overtime, and standard shift contracts will be increased. The firm said jobs were not at risk among the delivery driver workforce.
New convenience leadership roles
Sainsbury’s will introduce four new regional store director roles dedicated to its convenience estate. The roles are described as focusing solely on convenience, with one in the North of England, one in Central England and two in the South, intended to give supermarkets a clearer leadership line and help both formats respond faster to feedback and sharpen execution. The change was presented with the line: “Customers use supermarkets and convenience stores differently, so we’re updating our structures to reflect that. ”
Investment in AI and automation
The latest changes come after the group decided to invest more in technology to improve efficiency, including AI forecasting tools and warehouse robotics, and to maximise data capability so teams can focus on customer-facing priorities. A spokesperson for Sainsbury’s 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. ” Retail commentary from the group also described the work as “strengthening our focus behind both Sainsbury’s and Argos. ”
Sales, history and speculation over Argos
Argos, which Sainsbury’s bought in 2016, has struggled since the Covid pandemic. The group 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 UK supermarkets increased sales by 3. 4%, while Argos sales fell 1% in the period. Recent disappointing trading figures have prolonged speculation that Sainsbury’s might look to offload Argos after the retailer was the target of an approach from Chinese group JD. com in the autumn. The company also said changes were 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. ”
Sector context and past cuts
The group said the current proposals affect less than 1% of its 140, 000 workforce. The overhaul forms part of year three of Sainsbury’s Next Level strategy. The wider programme follows an earlier announcement that the group would cut more than 3, 000 jobs: one article noted the group announced in January last year it would cut more than 3, 000 jobs, including about 20% of senior management roles and shutting its remaining 61 cafes; another piece of the record states the latest proposals come after Sainsbury’s announced plans in January 2025 to cut more than 3, 000 roles as part of a broader cost-saving programme that included the closure of 61 in-store cafés, the removal of patisserie and hot food counters, and a 20 per cent reduction in senior management roles, with the supermarket targeting £1bn in operating cost savings over three years. The group has also integrated its Chop Chop rapid delivery service into its main app: the 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 to simplify the customer journey as shopping habits shift online.
Wider retail moves and competition
Industry moves include Tesco saying last week it would cut almost 400 jobs in a restructure of the way it operated in-store bakeries; other coverage noted Tesco unveiling plans to cut around 180 head office roles while creating approximately 250 new positions to support online growth and faster fulfilment. Retail tech firm Ocado has been cited in different updates as announcing about a fifth of its workforce was being axed and preparing to cut around 1, 000 roles globally, the majority expected in the UK. The sector context also includes ailing Asda, 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, putting pressure on major traditional grocers.
Graham Biggart is set to head up the separate leadership board for Argos as part of the move to create a dedicated leadership structure for the chain within the wider group.
Employees, unions and the company are now in consultation on the proposals as the group presses on with technology-led reorganisation and changes to the Argos delivery model.
Closing: The package of proposals puts around 300 roles at risk across the technology, data and head office functions and includes operational changes across Argos delivery and Sainsbury’s convenience leadership, with the group positioning the moves as part of continued investment in digital capability and cost reduction efforts.
