Sainsbury’s has announced plans to cut around 300 head office jobs as part of a restructuring of its technology division and Argos delivery network.
The London-based retail group said the majority of the reductions would fall within its technology and data teams, where it is “consolidating routine reporting tasks” and creating more clearly defined, dedicated teams for both Argos and the supermarket business.
The shake-up will also see changes to Argos’s local delivery hubs. Staff shifts will be reorganised to provide more regular working hours with reduced overtime.
In addition, Sainsbury’s is introducing regional store directors for its Sainsbury’s Local convenience chain, a move designed to strengthen oversight and drive performance in that segment of the business.
The restructuring forms part of a broader investment in digital systems and automation. Sainsbury’s has been increasing spending on artificial intelligence forecasting tools and warehouse robotics to improve operational efficiency and reduce costs.
The announcement comes amid intense competition in the UK grocery sector. Major supermarkets are deploying technology and cost-saving measures as they battle for market share, particularly as Asda attempts to revive performance through aggressive price cuts.
Meanwhile, discount chains Aldi and Lidl continue expanding across the UK, placing sustained pressure on traditional grocers.
Last week, Tesco confirmed it would cut almost 400 roles as part of a restructure of its in-store bakery operations.
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.”
The company said the changes affect less than 1% of its 140,000 employees.
## Argos sales fall despite supermarket growth
Sainsbury’s acquired Argos in 2016, but the retailer has faced difficulties since the Covid pandemic. The group has cited “significant headwinds” including weak consumer confidence, strong online competition and widespread discounting, which contributed to a fall in sales over the crucial Christmas quarter.
In the three months to 3 January, Sainsbury’s supermarket sales rose by 3.4%, while Argos sales declined by 1%.
The weaker performance at Argos has fuelled speculation that Sainsbury’s could consider selling the retailer. Argos was the subject of an approach from Chinese e-commerce group JD.com last autumn.