Cost-saving measures at British supermarket chains Sainsbury’s, ASDA and Morrisons are resulting in the loss of thousands of jobs. The retailers point to increased costs due to government budget measures.
Difficult decisions
Sainsbury’s, the United Kingdom’s second-largest supermarket chain, is planning to cut more than 3,000 positions at the head office and in stores, The Guardian reports. The retailer is removing service counters for patisserie, hot meals and pizza, will transition its bakery department to self-service and plans to close 61 Sainsbury’s Cafés.
CEO Simon Roberts hopes to save a billion pounds (1.2 billion euros) over three years, stressing the need to make tough choices in what he describes as a challenging cost environment. Measures by the Labour government are said to be imposing higher costs on companies for social security and minimum wages.
For similar reasons, competitor Morrisons (the UK’s fifth-largest chain) is cutting more than 200 jobs in its HR department. CEO Rami Baitiéh (formerly of Carrefour) states that companies are facing an avalanche of costs. ASDA, the third-largest chain, announced in November that jobs would be cut at its head office, though the exact number was not specified. The chain has been experiencing a decline in market share and is undergoing a reorganisation.
