Supermarket giant is to cut 1,500 jobs in a massive £1 billion ‘cost-cutting plan’

A SUPERMARKET giant is to cut around 1,500 roles as part of plans expected to cut costs by around £1 billion a year.

Sainsbury’s said it would cut roles at its contact center in Widnes, Cheshire, at its bakeries and in-store warehouses.

The supermarket will reduce its workforce by around 1,500 jobs, but consultations are ongoing about this.

It says the money it saves will be reinvested into the business to provide customers with “great value, quality and service”.

CEO Simon Roberts said: “As we enter the next phase of our strategy, we are making some difficult but necessary decisions.”

“I know today’s news is distressing for the colleagues affected and we will do everything we can to support them.”

At Widnes, a “vast majority” of staff will see their employment move to another company Sainsbury’s already works with.

All Sainsbury’s Careline services will now be managed by this third-party company, Sainsbury’s said.

It also plans to move more stores “to a more efficient way to freshly bake products.”

Investments in technology and automation will also ensure that the retailer will need fewer local warehouses or fulfillment centers.

Here goods are packed and shipped to fulfill orders, especially online.

A “very small proportion” of staff will be affected and could be helped to find new roles where possible

Mr Roberts said: “The proposals we’ve been talking to the teams about today are important to ensure we can better focus on the things that have a real impact for our customers, delivering good food for all of us and building a platform for growth.”

Earlier this month, Sainsbury’s unveiled plans to revamp its supermarkets, with a focus on creating more food space.

Sainsbury’s said it will reduce its general merchandise and clothing offering in many stores to increase its food range.

It means the company’s ‘Tu’ clothing departments could be reduced in size across dozens of major stores.

It comes after Sainsbury’s announced plans in July last year to close 100 of Argos’ UK branches over the next 12 months.

The move is part of the retailer’s plan to move away from the high street and focus on expanding its supermarket presence.

Argos currently has 1,103 locations, including 669 standalone stores and 431 locations within Sainsbury’s stores.

Last year the high street retailer closed 47 UK stores, including all 34 branches in the Republic of Ireland in June.

YOUR DISCHARGE RIGHTS

Companies can choose to reduce their workforce, but employees must understand their rights.

You are only entitled to statutory severance pay if you have worked in your position for two years or longer.

The statutory rate is based on your age, weekly wage and number of years of employment.

You will get:

• Half a week’s wages for every full year you worked under the age of 22
• One week’s pay for every full year you worked, if you were 22 years or older, but younger than 41
• One and a half weeks’ pay for every full year you worked when you were 41 years or older.

But it is limited to 20 years and the maximum redundancy pay you can get is currently £16,320.

Some companies may offer to pay more than the legal amount. This is usually stated in your contract.

Moreover, at the end of your notice period, you are still entitled to the wages you still owe for untaken vacation days.

The government has one calculator on the website to help you work out how much you owe.

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