Sainsbury’s Plans to Terminate 2,000 UK Jobs in HR and Payroll

The second-largest supermarket chain in the UK revealed that it was consulting on a set of measures that would largely affect human resources and payroll staff, freeing up cash for the ongoing price war with rivals.

The FTSE 100 company wants to completely terminate all HR and payroll clerk roles from in-store – affecting around 1,400 people.

It said that 600 more roles were under threat from a restructuring that would incorporate HR and other support roles across Sainsbury’s Bank and its grocery chain, Argos.

A spokesperson stated: “The UK grocery market is changing at a rapid pace and it’s crucial that we transform the way we operate to meet future challenges and continue to provide customers with best in class service.

“Following a comprehensive review, we are proposing some updates to our HR structures and systems, as well as changes to a number of other support roles, subject to consultation.

“This has been a difficult decision and we appreciate that this will be a tough time for those colleagues affected by the changes. We will support them in any way we can.”

Sainsbury’s currently employs just under 200,000 people across its businesses. The company confirmed the plan for cost-cutting after the markets had ended for the day.

The reorganisation by Sainsbury’s, which took over Argos in 2016, is part of a previously declared £500m efficiency drive that is aimed at letting the company invest more in its customer proposition.

The so-called big four chains, which also include Asda, Morrisons, and Tesco, have been struggling through a customer drift towards discounters since the conclusion of the financial crisis.

The freshest industry data that was published by Kantar Worldpanel revealed that the market share of Sainsbury’s had dropped to 15.8 percent in the 12 weeks to 8 October from 16 percent a year ago.

The value of sales for the sector was up 3.1 percent,  with Sainsbury’s demonstrating growth of 1.9 percent.

The report illustrated a fairly rosy picture for the industry as spending on essentials exhibits little sign of winding down.

As inflation outpaces wage growth, broader retail sales have come under pressure from the Brexit-linked influence on household budgets.